Nonprofits are businesses like any other businesses. As such, they have to comply with similar laws.
Your organization should conduct an employment law compliance check. While your organization may have been compliant when it started, changes in the organization can affect what laws apply to you. Local city ordinances may add protected traits to federal and state anti-discrimination laws. A decrease or increase in staff size may change what laws apply to your organization.
Nonprofits are subject to all employment laws in the same manner as for-profit companies. Nonprofits must comply with wage, anti-discrimination laws, and other laws applicable to employers. Not all of these employment laws will apply to your organization since each law has different requirements.
Here are a few key employment laws nonprofits should be aware of:
- Fair Labor Standards Act – This federal law dictates requirements for minimum wage rates, overtime pay, record-keeping, and youth employment. This law is only applicable to nonprofits with specific characteristics.
- Texas Payday Law – This state law outlines an employee’s rights regarding payment of wages and rules regarding deductions.
- Texas Minimum Wage Law – This state law establishes the minimum wage for employees not covered by the Fair Labor Standards Act.
- Title VII of the Civil Rights Act of 1964 – This federal law prohibits discrimination and harassment in employment based on race, color, gender, religion, or national origin.
- Family and Medical Leave Act – This federal law requires certain employers to provide unpaid leave for specific family circumstances.
Other Applicable Laws for Employers:
- Unemployment Compensation – Your organization may need to register for unemployment compensation if the nonprofit has a certain number of employees for at least 20 weeks during the year. (Check with your favorite attorney for the current number!) A nonprofit may elect to pay reimbursements instead of contributions to the unemployment compensation commission. The election must be made within 45 days after the Texas Workforce Commission notifies the employer that it is subject to the unemployment compensation laws.
- Workers’ Compensation Insurance – Comply with workers’ compensation insurance coverage.
- Notice of Employment Laws – Post required employment law posters in the workplace. A 4-in-1 poster can be purchased at www.gneil.com.
The information provided in this post is just a snapshot of employment laws. Regulations change and, while we do our best, we cannot guarantee that the information is up to date. For more information, check out the resources below or contact us at Cullinane Law Group to see how we can help your nonprofit stay compliant.
Texas Workforce Commission: Resources for Businesses & Employers
Department of Labor: Compliance Assistance – Fair Labor Standards Act