Page 220 - Washington Nonprofit Handbook 2018 Edition

Under the WMWA, any individual providing services as a volunteer who then
receives wages for the same type of services is no longer exempt, and must be paid
at least minimum wage and overtime pay for hours worked in excess of 40 hours
per workweek. In that case, an employee-employer relationship is deemed to exist,
and unpaid employment is unlawful.

However, individuals do not lose their volunteer status if they receive a
nominal fee or stipend. A nominal fee is not a substitute for wage compensation
and must not be tied to productivity. An individual who volunteers to provide
periodic services on a year-round basis may receive a nominal monthly or annual
fee without losing volunteer status. An employer should make sure that any
“volunteering” is truly voluntary.

Nonprofits often are tempted to allow employees to volunteer for the
organization. Although non-exempt employees of a nonprofit may in narrow
circumstances volunteer for the organization without violating wage-hour rules, this

is a risky proposition. The nonprofit can be held liable for unpaid wages and
penalties if the volunteer activity is deemed regular work. For that reason, a
prudent practice for nonprofits is to bar non-exempt employees from volunteer
activities and pay them for all time spent on tasks related to the organization. For
example, a non-exempt program staff member may want to volunteer and help
check in attendees at a fundraising event. If the employee has nothing to do with
fundraising and is not required to attend the fundraiser as part of her job, it may be
permissible to allow her to volunteer at the fundraiser if all of the requirements
below are met. However, almost every employee of a nonprofit has a range of
responsibilities that may not have clear boundaries. In this example, it would be
safer to pay the employee for her time at the fundraiser.

Any nonprofit that permits non-exempt employees to volunteer for the
organization must avoid any implication that volunteering is a requirement of the
job. An employer whose non-exempt employees also volunteer should make sure
that:

• The services are entirely voluntary (without contemplation of pay),
there is no coercion to volunteer, and no penalty for not volunteering;

• The activities are predominately for the employee’s benefit;

• The employee does not replace another employee while volunteering;

WASHINGTON NONPROFIT HANDBOOK -209- 2018