Is Workers' Compensation Coverage Required?
Workers' compensation coverage is not required for a non-profit religious organization (as designated under the IRS tax code) that only pays its clergy, teachers, and/or individuals providing non-manual labor. (To be exempt the clergy must be performing only religious duties and the teachers must only be performing teaching duties.)
Manual labor includes but is not limited to such tasks as:
- carrying materials such as pamphlets;
- binders, or books;
- cleaning such as dusting or vacuuming;
- playing musical instruments;
- moving furniture;
- shoveling snow;
- mowing lawns;
- construction of any sort.
Workers' Compensation coverage is not required for individuals volunteering their services. Volunteers cannot receive compensation including stipends, room and board, and other "perks" that have monetary value. Money used solely to offset expenses incurred while performing activities for the nonprofit is not counted as stipends.
Workers' Compensation coverage is also not required for persons receiving charitable aid from a religious or charitable institution (as designated under the IRS tax code) 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.
Workers' Compensation coverage is required for individuals compensated for their services, except as indicated above.