Is Workers' Compensation Coverage Required?
Nonprofit entities that are compensating individuals for their services are required to obtain workers' compensation coverage for all employees with the following exceptions:
- Clergy and members of religious orders that are performing religious duties (WCL § 3 Group 18).
- Members of supervised amateur athletic activities operated on a nonprofit basis, provided they are not otherwise engaged or employed by any person, firm, or corporation participating in such athletic activity (WCL § 3 Group 18).
- People engaged in a 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.
- People engaged in a non-manual capacity for a nonprofit institution designated under the IRS tax code as a religious, charitable, or educational organization.
- 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 and they do not perform any manual labor.