Employees and Volunteers–What’s the Difference?

by Bob Moore

Do you know the difference between volunteers and employees. Yes – employees get paid and volunteers do not – but there’s a lot more to it than that.
The Fair Labor Standards Act defines volunteers as “individuals who provide services without any expectation of compensation, and without any coercion or intimidation.” Like most laws, “gray areas” exist within this definition as well. What if a volunteer receives a small payment or something of value in exchange for volunteering? Does this make the volunteer an employee even if he or she didn’t expect to be paid? What about a volunteer who receives college credit for their work? What about the AmeriCorps program, where Corps members receive a stipend?
“Indirect” compensation – free parking, meals in the cafeteria (hospitals anyone?) – are types of benefits that the government does not count as “compensation” if it is provided more for the convenience of the non-profit than as payment for the volunteer. However, other types of indirect compensation – like free babysitting or fitness club membership at the local Boys/Girls Club or YMCA – has a real dollar value and might be considered more like compensation than as convenience.
Clear? As mud? What other questions can you ask that might help determine the difference between volunteer work and compensated work? Is the worker motivated by personal motives? – Is the work being done typically associated with volunteer work? – Is the work full-time? – How much control does the non-profit have over the volunteer? – Is the work schedule primarily arranged by the volunteer for their convenience or is the schedule more likely to be arranged by the organization to better meet their needs? If you compensate or reimburse your volunteers, you might want to dig deeper.
One thing all non-profits should be aware of: The U.S. Department of Labor takes the position that employees may not volunteer to do things for their employer that is the same as or similar to their normal job.
This post is by no means all-inclusive. It may even pose you with more questions than you had before reading it! I’ve been in this “business” for a while – as both a volunteer and managing a non-profit – and I can assure you that I’m not always clear. If you have personal experiences that you can share or additional information that you’ve gained over the year, please “blog-on” and share. Thanks for reading.

Bob Moore is Executive Director of the Friends of the Cobbossee Watershed in Augusta, Maine.

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3 Responses to Employees and Volunteers–What’s the Difference?

  1. Anne Schink says:

    In a state like ours with organizations of all sizes, the distinction between the roles of volunteers and staff can get pretty blurred. I think it is really important for Executive Directors and Boards to be thoughtful and deliberate about how these roles are assigned. One thing for sure, you shouldn’t pay some people for jobs that are also done by volunteers. Making a clear distinction between their roles reduces the opportunity for confusion and resentment.

  2. Murray Lewis says:

    I work as a marshall at a local golf course. Recently a new director issued a letter to all marshalls with a long list of must do jobs and set hours of work and designated lunch time Grounds for dismissal for refusing any or all. All marshalls are volunteers. Is this not illigal? We get discounts on food and merchandise and free play for our time.

  3. VM Tech says:

    Murray– this is a great question, and a tough one. It is within the organization’s purview to establish a structure for volunteers and the expectations for their positions, including hours and duties. In this case, without knowing the specifics, it sounds like there might have been a better way for the organization to communicate with the volunteers about changes to those expectations and roles. Hopefully you were able to open a line of communication and have a conversation to educate the organization about best practices in managing volunteers. Is the golf course a nonprofit organization?

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