Employment Law for North Carolina Nonprofits: A Handbook for Managers and Board Members of Nonprofit Organizations describes the major state and federal employment law requirements that apply to private, nonprofit organizations and offers suggestions for adopting personnel practices that reduce exposure to costly litigation and produce a more productive workforce.
©2008 North Carolina Center for Nonprofit Organizations, Inc.
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.