Nonprofit entities that are compensating individuals for their services are required to obtain disability and paid family leave benefits coverage for all employees with the following exceptions:
- Clergy and members of religious orders that are performing religious duties (WCL § 3 Group 18).
- People engaged in a professional1 or teaching capacity in or for a nonprofit institution designated under the IRS tax code as a religious, charitable, or educational organization. Teachers must only be performing teaching duties to be exempt from coverage.
- Persons receiving charitable aid from a religious or charitable institution who perform work in return for such aid and who are not under any express contract of hire, and certain persons receiving rehabilitation services in a sheltered workshop.
- Compensated executive officers of a not-for-profit corporation or unincorporated association are exempt, if the institution is designated under the IRS tax code as a religious, charitable, or educational organization.
Individuals who volunteer their services for nonprofit organizations and receive no compensation do not require disability and paid family leave benefits coverage.
1 Professional Capacity
A person engaged in a "professional capacity" exercises discretion and judgment rather than outside supervision in work that is predominantly intellectual and varied in character.
A person is engaged in a "professional capacity" when:
- Their primary work requires knowledge of an advanced field of science or learning, usually earned through specialized intellectual; or
- They do original and creative work in a recognized artistic field that depends primarily on their invention, imagination or talent