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Nonprofits operating in Georgia must comply with both the federal Fair Labor Standards Act (FLSA) and relevant state wage and hour rules. Although Georgia’s state minimum wage is below the federal standard, nonprofits must usually adhere to the higher $7.25 per hour wage established by the FLSA.

The FLSA applies to any business with annual gross revenue of at least $500,000 or employees engaged in interstate commerce. If a nonprofit employee makes out-of-state phone calls, sends mail across state lines, or maintains a website (which is accessible from anywhere), they’re technically engaging in interstate commerce.

Tax-exempt status does not exempt nonprofits from wage laws. They must, unless exempt, pay overtime, maintain accurate time records, and follow all standard labor rules unless a clear exemption applies.

Employment Mistakes That Can Cause Problems for Nonprofits

• Misclassifying employees as independent contractors to avoid tax or benefit obligations.
• Treating regular employees as “volunteers” to avoid paying wages.
• Failing to pay overtime to eligible staff working more than 40 hours in a week.

Georgia mirrors federal guidelines for determining exempt vs. non-exempt employees, so if you’re unsure whether a staffer qualifies as exempt (salaried, no overtime), consult a nonprofit attorney before making that determination.

Volunteers Must Be Truly Voluntary

Volunteers can be vital to a nonprofit’s operations, but their role must be carefully defined. According to the U.S. Department of Labor, volunteers must not expect compensation and cannot be coerced into “volunteering” for roles that would normally be paid positions.

In Georgia, volunteers can be reimbursed for reasonable expenses (like mileage or supplies), but once you start offering perks like stipends, bonuses, or even gift cards, you may cross the line into creating an employment relationship. That could trigger wage obligations, tax reporting, or even insurance coverage requirements.

To stay compliant, Atlanta nonprofits should:

• Create clear written volunteer agreements.
• Avoid assigning volunteers to duties identical to those of paid staff.
• Refrain from tying participation to promised rewards or preferential treatment.

Internships Require Careful Classification

Internships are another gray area where nonprofits often run into compliance issues. Not all interns can be unpaid, even at a nonprofit. The key question is whether the internship is primarily educational and for the benefit of the intern, not the organization.

The U.S. Department of Labor uses a seven-part test (based on the “primary beneficiary” standard) to determine if an unpaid internship is legal. While this test is flexible, Georgia nonprofits should proceed cautiously. If your intern performs regular business functions, works independently, or is expected to contribute to productivity, you may be required to treat them as a paid employee.

Unpaid internships at nonprofits should ideally be integrated into coursework or provide academic credit via a partnership with an academic institution (if possible). They should also be of a duration that matches the learning experience, like a short, structured internship.

Unpaid interns can complement or assist paid staff, but they shouldn’t be performing the same roles or displacing paid staff.

Anti-Discrimination and Harassment Rules Still Apply

All nonprofits with 15 or more employees are subject to federal anti-discrimination laws under Title VII, the ADA, and other statutes. Even smaller nonprofits in Georgia are covered under state law when it comes to harassment, retaliation, and fair hiring practices. Nonprofits subject to anti-discrimination laws should have:

• A written anti-harassment policy that applies to employees, volunteers, and interns.
• Clear reporting procedures and an internal investigation process.
• Proper training for supervisors and leadership.

Complying with Benefit and Leave Requirements

Nonprofits in Georgia are not required to offer paid leave or benefits beyond what is mandated by federal law. However, if your organization does offer PTO, health insurance, or retirement plans, you must administer those benefits consistently and according to your written policies.

You should also be aware of federal requirements like the Family and Medical Leave Act (FMLA), which applies to employers with 50 or more employees. Nonprofits that receive federal funding may be subject to additional benefit or leave obligations under grant conditions or federal contractor rules.

When to Call a Nonprofit Attorney

Legal support isn’t just for worst-case scenarios. Nonprofit general counsel can help Atlanta nonprofits proactively build HR policies and employee classifications that comply with Georgia law and your federal obligations. Consider reaching out to a nonprofit attorney if you are:

• Hiring your first staff member and aren’t sure how to structure the position.
• Drafting volunteer or intern agreements.
• Dealing with a personnel dispute involving harassment, leave, or pay.
• Receiving federal or grant funding that may come with employment conditions.

Get Actionable Advice and Detail-Oriented Contract Reviews from an Experienced Atlanta Nonprofit Attorney 

If your Georgia nonprofit needs help reviewing its HR policies, drafting employment documents, or responding to a specific employment-related issue, the Law Office of Cameron Hawkins can help. Call (678) 921-4225 to schedule a consultation.