A r c h i v e d  I n f o r m a t i o n

Managing Volunteers Within the Law

Workers? Compensation

Workers? compensation laws provide a means of recovery for individuals injured during the course and scope of employment. Workers? compensation benefits are commonly reserved exclusively for injured "employees" and their families. Several states, however, allow volunteers to utilize workers? compensation under some circumstances, while a few other states define "employee" and/or "employment" to include some classes of volunteers. Since workers? compensation laws vary from state to state, familiarity with the law of the state or states in which your organization operates is necessary to determine your obligation to purchase workers? compensation insurance.

The applicability of workers? compensation rules to volunteers depends on the wording of state statutes, some of which exclude nonprofits? employees as well as volunteers. The Arkansas statute, for example, expressly excludes from its definition of covered employment "institutions maintained and operated wholly as public charities."[36] Idaho exempts from workers? compensation coverage "employment which is not carried on by the employer for the sake of pecuniary gain."[37] Some states statutorily allow volunteer organizations the option of treating their volunteers as employees for purposes of workers? compensation.[38]

In a few states, the question of whether a volunteer may receive workers? compensation benefits has been addressed by the courts. Some of these decisions hinge on whether the volunteer receives any form of compensation, such as a living allowance, stipend, room and board, benefits or even reimbursement for expenses.[39] Other courts place little emphasis on whether or not the individual has been compensated, but look instead to the degree of control the employer exercises over the volunteer?s service.[40]

Although you may not want to pay workers? compensation premiums, covering volunteers under workers? compensation may offer a significant advantage if the option is available. In almost all states, individuals who elect to seek workers? compensation remedies cannot additionally attempt to recover damages through personal injury litigation against their employer. In these states, workers? compensation presents a trade-off. Workers can recover under workers? compensation for work-related injuries without needing to prove the employer?s fault; but their recoveries are more limited than a jury might award.


-###-
[Anti-Discrimination] [Table of Contents] [Child Labor Laws]