An often overlooked aspect of corporate law is the concept of “doing business” in a particular jurisdiction. This determination comes into play when the corporation’s activities go beyond the borders of its home state or “domicile.”
Minimizing legal exposure is important because volunteers’ acts are generally imputed to the nonprofit organization. Specific, written volunteer policies and procedures are critical. Important components of a good volunteer program include clear and forward-thinking volunteer policies, thorough volunteer applications, screening, and management.
Sure, it takes a good deal more paperwork and money to maintain an employee versus using an independent contractor. But it’s more than worth it to make sure you are properly categorizing an employee. “Independent Contractor” does not have a finite definition under the law. Certain liabilities also don’t apply to independent contractors, such as worker’s compensation, FMLA, paid family leave benefits, unemployment insurance, and other various potential benefits. So, it can be tempting to try to wedge a person into an independent contractor position when they actually should be classified as an employee.