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Nonprofits often work under tighter budgets, rely on smaller HR teams, and employ more flexible staffing models than their private-sector counterparts. While creative staffing approaches may help minimize expenses, they also introduce legal risk. Missteps can expose nonprofits to employment claims such as:

• Discrimination or harassment complaints
• Wage and hour violations
• Wrongful termination lawsuits
• Retaliation claims related to whistleblower activity

Even a single employment dispute can result in significant legal costs, reputational damage, and disruption to programs or donor relationships. Proactively addressing employment law risks helps protect the nonprofit’s people, finances, and public trust.

Key Employment Law Risks Nonprofits Should Watch

Employee vs. Independent Contractor Misclassification

Nonprofits sometimes incorrectly classify workers as independent contractors when they should be treated as employees. Misclassification can lead to unpaid wage claims, tax liabilities, and penalties from government agencies.

Outside general counsel can review worker roles and responsibilities to ensure proper classification under IRS guidelines and Georgia labor laws.

Volunteer and Intern Management

Volunteers and unpaid interns can be a huge asset. However, if not managed properly, they can also create risk. For example:

• Volunteers cannot be treated like unpaid employees performing essential business functions.
• Internships must meet strict legal criteria to be unpaid. Otherwise, interns may be entitled to minimum wage and overtime.

Nonprofits should have clear agreements and policies that define the role, expectations, and protections applicable to volunteers and interns.

Wage and Hour Compliance

Nonprofits are subject to the Fair Labor Standards Act (FLSA) just like for-profit businesses. Common wage and hour risks include:

• Failing to pay overtime to nonexempt employees
• Miscalculating compensable hours worked
• Allowing off-the-clock work

General counsel can help nonprofits properly classify employees, set up compliant timekeeping systems, and respond quickly to wage-related complaints.

Harassment and Discrimination Prevention

Nonprofits must comply with federal and state laws prohibiting discrimination and harassment based on race, gender, age, disability, religion, and other protected characteristics.

Leadership should ensure that:

• Anti-harassment and nondiscrimination policies are clear, updated when necessary, and distributed to all employees
• Complaint reporting and investigation procedures are in place
• Appropriate training is conducted regularly for staff and supervisors

Outside general counsel can assist with policy drafting, workplace training, and sensitive internal investigations if complaints arise.

Handling Leave Requests and Accommodations

Nonprofits must comply with the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA), and similar laws governing employee leave and workplace accommodations. Some of the accommodation and leave-related issues nonprofits run into include:

• Mishandling requests for medical leave or reasonable accommodations
• Failing to engage in the interactive process under the ADA
• Retaliating against employees who request protected leave

A proactive legal review of leave policies can help nonprofits stay compliant and avoid costly legal disputes. Having designated outside counsel can help ensure decision makers have access to reliable legal guidance when leave or accommodation questions arise.

Why Nonprofits Benefit From Outside General Counsel on Employment Issues

Many nonprofits don’t have a dedicated HR department. Even those that do may not have easy access to in-house legal support. Employment law is complex, and even well-intentioned mistakes can lead to expensive consequences. Hiring outside general counsel provides nonprofits with:

• Practical advice on setting up compliant HR policies and employee handbooks
• Support handling employee complaints before they escalate to lawsuits
• Guidance on terminations, restructuring, or sensitive staffing changes
• Risk assessments when new laws or regulations impact employment practices

Unlike reactive litigation counsel, general counsel focuses on helping nonprofits spot and fix issues before they lead to formal complaints, regulatory fines, or negative publicity.

Remaining Compliant With Changing Employment Law Doesn’t Need to Be Overwhelming

Employment law compliance is not a one-time project. As staffing grows, programs change, and regulations evolve, nonprofit leaders may need to revisit their HR policies and practices.

However, that doesn’t mean most nonprofits require daily legal oversight. Most organizations benefit from periodic legal reviews, updates to handbooks and strategic consultations during hiring campaigns, leadership transitions, or internal reorganizations.

At the Law Office of Cameron Hawkins, we help Atlanta nonprofits take a preventive, practical approach to employment law. Our goal is to provide leadership teams with the support they need without burdening their budgets.

Build a Stronger HR Foundation for Your Atlanta Nonprofit

Employment law compliance isn’t just about avoiding lawsuits. It’s about building a healthy, respectful workplace that supports your nonprofit’s mission. Having clear, legally sound policies protects your employees, your board, and the people you serve.

If your nonprofit needs help navigating employment law risks or strengthening its HR practices, contact the Law Office of Cameron Hawkins at (678) 921-4225.