Workers' Compensation Changes for Small Nonprofits

Date Posted: 11/27/2017
Last Updated: 5/30/2024

At the Center’s recommendation, both the House and Senate included a provision in their regulatory reform bills that could save money for many small nonprofits with fewer than three employees. Under state law, any employer with three or more employees is required to purchase workers’ compensation insurance. The definition of “employee” in the current law includes nonprofit board officers, meaning that small nonprofits with three or more board officers (i.e. almost all nonprofits) are required to take on an often unnecessary expense.  The bill would clarify that uncompensated nonprofit board officers and volunteers are not employees for the purpose of the state workers’ compensation law.

For more information, check out the Center's one-page fact sheet.