As an employer, can your organization also have people providing services for no compensation? The short answer is yes, but only if certain circumstances apply. And the rules for interns and volunteers depend on what type of organization you are. This article addresses the volunteer restrictions that apply to non-profit entities in New York. We will separately address related concerns (i.e., unpaid interns) in for-profit businesses.
Non-Profit Volunteers
Generally speaking, anyone who agrees to perform services without getting paid can be referred to as a volunteer. Legally, there are more specific criteria that may apply, and some further distinctions to be made.
New York not-for-profit organizations often have both paid employees and unpaid volunteers who collectively perform an array of roles to pursue the organization’s mission and objectives. For the most part, this is acceptable. But there are legal lines that need to be drawn.
Note that we are talking about duly established non-profit entities that operate for charitable, educational, or religious purposes. Other types of entities usually may not use unpaid volunteers.
Volunteer Restrictions
Under state and federal minimum wage and overtime laws, volunteers could be deemed employees (and entitled to compensation) if certain conditions aren’t satisfied.
In particular, as described by the New York Department of Labor, unpaid volunteers may not:
- Replace or augment paid staff to do the work of paid staff
- Do anything but tasks traditionally reserved for volunteers
- Be required to work certain hours
- Be required to perform duties involuntarily
- Be under any contract to hire, express or implied, by any other person or business
- Be paid for their services (except reimbursement for expenses)
Employees Who Volunteer
As a partial limitation on the above criteria, it is possible for employees of a non-profit also to volunteer some of their time for the organization. However, they cannot agree to forego compensation for their regular job. Instead, they can only volunteer (without pay) to do something completely different from what they do as employees. For example, if an organization employs an events coordinator, they presumably couldn’t allow that employee to oversee a fundraising event on a volunteer basis. But a non-profit organization’s receptionist, accountant, or delivery driver may be free to volunteer to run such an event without pay.
Review Your Volunteer Arrangements
Missteps in managing volunteer roles can lead to legal complications under state and federal minimum wage and overtime laws. Therefore, non-profits must establish clear volunteer policies and guidelines to maintain a beneficial and legal relationship between the organization and its dedicated volunteers.
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