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Nonprofits are generally subject to the same employment laws as other employers when making decisions about employees. While a charitable mission may shape an organization's culture and values, it does not exempt nonprofits from complying with applicable employment laws.
Volunteers, however, occupy a different legal relationship with the organization. Because they are not employees, different considerations may apply when deciding whether to end a volunteer relationship.
Regardless of whether the organization is addressing an employee or a volunteer, consistent decision-making, appropriate documentation, and clearly communicated expectations can help reduce legal and organizational risk.
Do Different Employment Laws Apply to Nonprofits?
For employees, nonprofit organizations generally follow the same employment laws that apply to for-profit businesses. This includes laws governing discrimination, retaliation, wage and hour requirements, leave rights, workplace safety, and other employment obligations.
Georgia is an at-will employment state. In many situations, employers may end an employment relationship at any time and for any lawful reason. However, at-will employment does not permit termination for unlawful reasons, such as discrimination, retaliation, or in violation of an employment contract or other applicable legal protections.
How Are Volunteers Different From Employees?
Volunteers are not employees, so the legal relationship between the organization and the individual is often different. Volunteer service is typically governed by volunteer agreements, organizational policies, the expectations established by the nonprofit, and, in some cases, grant requirements.
That does not mean volunteer relationships should be managed informally. Volunteers frequently represent the organization in the community, interact with clients, handle confidential information, or assist with important programs.
When concerns arise regarding performance, conduct, or policy compliance, documenting those issues and addressing them consistently may help protect both the organization and the volunteer.
It is possible for disagreements to arise when a volunteer relationship ends. A former volunteer may question whether the organization's policies were followed, allege discriminatory treatment, or claim the relationship should have been treated as employment rather than volunteer service.
Consistently applying volunteer policies, ensuring volunteers are properly classified, and documenting significant performance or conduct concerns may help nonprofits respond more effectively if those decisions are later challenged.
Documenting Performance and Conduct Concerns
When a nonprofit terminates an employee for performance problems, misconduct, attendance issues, or policy violations, leadership should be able to identify the specific reasons for the decision and show how those concerns were addressed.
This becomes especially important if the former employee later alleges discrimination, retaliation, or another unlawful motive. Even an unsupported claim can become more difficult to resolve when the organization has little documentation, cannot clearly explain who made the decision, or has applied similar policies differently to other employees.
Relevant documentation may include:
- Specific performance deficiencies or policy violations
- Dates and details of attendance or reliability problems
- Complaints, safety incidents, or inappropriate conduct
- Coaching conversations, corrective action, or written warnings
- Reports from supervisors or witnesses
- The employee’s response to the concerns
- Records showing how similar situations were handled within the organization
Consistent enforcement matters as much as documentation. A terminated employee may point to coworkers who engaged in comparable conduct but received less serious discipline. If leadership cannot explain the difference, that inconsistency may complicate the organization’s response to a discrimination or retaliation claim.
Clear records do not prevent every dispute, but they can help the nonprofit demonstrate that the decision was based on legitimate, documented concerns rather than an unlawful reason.
Who Should Make the Decision?
Who has the authority to end an employment or volunteer relationship depends on the organization's governance structure and internal policies.
Routine employment and volunteer decisions are often handled by supervisors, managers, or executive leadership. More significant personnel matters may involve human resources professionals, legal counsel, or other members of leadership before a final decision is made.
In some situations, the board of directors may also have a role. This is particularly common when decisions involve executive leadership or when authority is assigned to the board under the organization's bylaws, employment agreements, or governance policies.
Clearly defining decision-making authority before personnel issues arise can help organizations respond more consistently when difficult situations occur.
Additional Considerations for Executive Directors
Unlike most employees, executive directors may report directly to the board of directors and may have written employment agreements or other contractual arrangements that affect employment decisions.
When considering changes involving executive leadership, organizations may also need to think about governance responsibilities, leadership transitions, internal communications, donor confidence, and operational continuity.
Because these situations can have broader organizational implications, obtaining legal guidance before taking action may help reduce unnecessary risk.
Legal Guidance for Nonprofit Employment and Volunteer Matters
The Law Office of Cameron Hawkins advises nonprofit organizations on employment compliance, volunteer policies, governance issues, employee handbooks, and other workforce-related legal matters.
We can help your organization evaluate employment and volunteer decisions, review existing policies, and develop documentation that supports consistent and legally informed employment and volunteer practices.
Call 678-921-4225 to schedule a consultation.
