Page 218 - Washington Nonprofit Handbook 2018 Edition

PART 10. EMPLOYMENT ISSUES

CHAPTER 61. Application of Employment Law to Nonprofits

An increasingly complex labyrinth of common law and statutory
requirements at the federal, state, and local levels governs the employer-employee
relationship. As a general rule, nonprofit organizations are not exempt from these
laws. The array of employment law compliance issues facing nonprofit employers
is far too extensive and complex to cover in detail in these materials. This part,
however, highlights areas of employment law with which every nonprofit employer
should be familiar. For specific advice, consult an attorney.

Another resource nonprofit employers may want to consider retaining is one
of several organizations that provide human resources support. For a fee, such
organizations can in effect serve as an external human resources department.
Because they are knowledgeable of employment practices, they can help maintain
proper personnel files, assist with tailoring of benefits and employer policies, and
advise on employee relations matters that do not require legal advice.

CHAPTER 62. Classification of Workers

a. “Volunteer” Versus “Employee”

Because nonprofit organizations often rely on volunteers to perform
responsibilities that might be performed by employees in a for-profit organization,
it is extremely important that the nonprofit employer understands how
“volunteers” differ from “employees” under the law. Generally speaking, a person is
considered a volunteer if he or she performs services freely for an organization
without any expectation of, or receipt of, compensation for his or her services.

The Washington Minimum Wage Act (“WMWA”), RCW 49.46, expressly
exempts from its coverage volunteer work for nonprofit organizations.
1

1 Nonprofit employers are also subject to the federal Fair Labor Standards Act (“FLSA”) if they have at
least two employees and an annual business volume of $500,000, or operate as hospitals, health
care providers, schools or preschools. The FLSA definition of “volunteer” is substantially similar to
the definition under Washington law. Note that the guidance from the federal Wage and Hour
Division also clarifies that individuals may not “volunteer” for any commercial activities run by a
nonprofit organization, such as a gift shop. For more information, see https://www.dol.gov/whd/
regs/compliance/whdfs14a.pdf.

WASHINGTON NONPROFIT HANDBOOK -207- 2018