View Full Version : 501(c)(3) employment practices
Netbusiness
Aug 3, 2007, 01:52 PM
Where can I find information about the employment practices a Maryland based 501(c)(3) should follow? Are they bound by State Employment practices?
shygrneyzs
Aug 3, 2007, 02:03 PM
That would be a question your state's labor commissioner's office/department of labor could answer, or the attorney general's office. I have worked for various no-pro's with the 501(c)3 status and while the basic rights of the employee were the same across the board, each company did have their own contract and terms of employment.
I would start at the state level with the question and see where that leads you. Here are some net resources:
Employment Law Compliance (http://www.nonprofitexpert.com/employment.htm)
U.S. Department of Labor -- Find It! By Audience -- Nonprofits/Nongovernmental Organizations (http://www.dol.gov/dol/audience/aud-nonprofit.htm)
Nonprofit-Specific Legal Information (http://www.managementhelp.org/legal/np_genrl/np_genrl.htm)
excon
Aug 3, 2007, 06:07 PM
Hello Net:
A corporation holding a 501(c) 3 designation has requirements regarding its tax status and how it raises funds. It has no effect on its status as an employer.
Why don't you tell us what they did, and we'll tell you whether we think it's legal or what you can do about it.
excon
Netbusiness
Aug 7, 2007, 09:56 AM
The religious based 501(c) (3) without notice terminated an employment. No, warning, no place on notice. The reported infraction was that the employee asked too many questions when given an assignment. Now all the questions asked were relivant to the execution of the task. This employee has asked me if their termination was legal. Only knowing Federal and State mandates I am unsure about the world of 501(c)(3) exspecially religious based ones.
excon
Aug 7, 2007, 10:01 AM
Hello again, Net:
Like I said earlier. The designation affects their tax status, not their status as an employer.
They, like any employer, may fire any employee at any time, and for any reason whatsoever, unless that person has a union or employment contract, or unless that person is a member of a protected class of workers. A curious employee is not a protected class of worker.
excon
ebaines
Aug 7, 2007, 12:33 PM
Only knowing Federal and State mandates I am unsure about the world of 501(c)(3) exspecially religous based ones.
If this person had been fired from a private company under similar circumstances, would you think he/she has a wrongful termination case under any federal or state rules? If so, what would the basis be?
ScottGem
Aug 7, 2007, 12:50 PM
What makes you think a 501(c)(3) organization has any special employment rules? As excon says they don't. The designation is purely for tax purposes and has no bearing on employment.
Netbusiness
Aug 8, 2007, 06:19 AM
Just to clarify - the 501(c)(3) status is not just a tax identification. If they do not accept Federal funding (specifically religious based) they do not have to adhere to the labor and employement status monitored by a federal agency such as the department of labor - this is one of the biggest debates of the Faith Based initiative, there's no clause that exempts them if they accept federal funding.
Anyhow, just needed to clarify that.
I've received an anwer to my original question so thanks.
ScottGem
Aug 8, 2007, 06:39 AM
Actually 501(c)(3) IS just for tax purposes. The 501(c)(3) refers to a clause in the IRS tax regulations. However, to qualify for 501(c)(3) status an organization may have to meet other criteria.
The federal funding issue is outside the issue of 501(c)(3) status. The tax status may have a bearing on getting federal funding.
The point is that there are no special employment rules for an organization because of its 501(c)(3) status.
Fr_Chuck
Aug 8, 2007, 06:48 AM
As noted, no, the faith based incentive has nothing really to do with hiring and employment practice, ( except for those that don't like religion normally)
This is merely a tax code that exempts them from certain tax rules and sets them under a separate tax situation. Except for certain issues, like a Catholic School and fire someone for teaching abortion is great where a public school would fire them for teaching the religions view is great.
But general employment rules are normally first based on the company size, many small business with one and two employees are exempt from many rules that a 1000 person business has to follow, this is everything from personnel to OSHA rules.
But what you will get into is state rules on "right to work" as to the firing,
In general like in TN any company can fire anyone for any ( or no) reason.
So in my old business I can go in today and fire any employee I want, just because I am in a bad mood.
I would say this first has more to do with the specific state rules on right to work, second the size of the company.
And most likely the greatest, exactly what he was questioning.
Non profit or not, if a new employee comes in and starts causing trouble by asking or questioning everything a company does, I doubt any company wants them there.
excon
Aug 8, 2007, 07:03 AM
Hello again:
You actually didn’t clarify at all. In fact, I have no idea what you said.
there's no clause that exempts them if they accept federal funding.there’s no clause WHERE, that exempts them from WHAT?
You may be referring to some federal regulation. I’m not sure. However, I’m certain they’re not exempt from LAW (see below).
If they do not accept Federal funding (specifically religous based) they do not have to adhere to the labor and employement status monitored by a federal agency such as the department of laborThis is why I think you are referring to some REGULATION, because the law I’m speaking of isn’t monitored by a federal agency. It’s monitored by the courts.
this is one of the biggest debates of the Faith Based initiativeIf you understood how the law works on the ground, the debate might get cleared up.
Let’s say an employee of the organization you’re speaking of gets fired. If he sues over it, it’s a COURT that will decide if he was fired illegally – NOT a bureaucracy.
Furthermore, your explanation doesn’t make sense on its face. Given your argument, an ordinary church that DOESN’T accept government money, DOESN’T have to follow the law. Uhhhh, I think it does.
I appreciate clarity, but you didn’t provide it.
excon