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Glossary of WCB Terms

Nonprofit Executive Officer Exclusions


A not-for-profit entity that is not compensating individuals (including executive officers) for their services is not required to obtain a workers' compensation insurance policy. Please note that compensation includes stipends, room and board, and other "perks" that have monetary value. Money used solely to offset expenses incurred while performing activities for the nonprofit are not counted as stipends.

If a nonprofit has a workers' compensation insurance policy, its uncompensated executive officers of that not-for-profit corporation or unincorporated association are exempt, as long as that nonprofit corporation or association has elected to exclude those individuals from coverage (Form C-105.52 adobe pdf).

Compensated executive officers of a not-for-profit corporation or unincorporated association are exempt, as long as the organization is classified as religious, charitable or educational (Section 501(c)(3) under the IRS tax code) and the executive officers perform no manual labor.

[Manual labor includes but is not limited to such tasks as filing; carrying materials such as pamphlets, binders, or books; cleaning such as dusting or vacuuming; playing musical instruments; moving furniture; shoveling snow; mowing lawns; and construction of any sort.]

All compensated executive officers of a not-for-profit corporation or unincorporated association that is not classified as religious, charitable or educational (Section 501(c)(3) under the IRS tax code) must be covered by a workers' compensation insurance policy.