Pleasanton, CA asked in Employment Law for California

Q: I run a Church and many people that volunteer for the church also work for a different business that I own.

I run a Church and many people that volunteer for the church also work for a different business that I own and they volunteer for the church. So they spend like 60% of their time volunteering for the church and 40% working for my other business to earn money. Because they are paid per sale and not by their hour they pay is not always consistent. I was wondering if they could instead work for the church and

volunteer for my other organization, this way I could guarantee them consistent pay. Or could I be breaking any laws. Assuming they agreed to do this.

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3 Lawyer Answers
Daniel A. Thompson
Daniel A. Thompson
Answered
  • Temecula, CA
  • Licensed in California

A: I would recommend that you consult with an employment law attorney. I would be concerned that you are currently breaking laws, although I won't speculate because I don't know the nature of your other business. There are different laws for inside and outside sales. There are also different laws for commission-only agreements.

Louis George Fazzi agrees with this answer

Neil Pedersen
Neil Pedersen
Answered
  • Westminster, CA
  • Licensed in California

A: A private (non-government) for-profit employer cannot have volunteer workers, i.e., people that are not paid at least the minimum wage for their services, unless they fit very strict guidelines for being interns, or unless they are owners. Therefore your plan cannot work. In fact, you need to be very careful to draw a very bright line between the employees of the business vs. the volunteers to make sure there is no claim that they are doing work for free for the business under the guise of volunteering for the church.

Good luck to you.

Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: What concerns me with respect to your facts is that the workers for your business are paid "per sale and not per hour." which says to me that you are probably not paying minimum wage to them, because they see your business as connected to the church for which they provide volunteer service.

No matter what the method of calculation, every worker is entitled to receive minimum wage. When employees are put on a "commission" basis for retail sales this is commission against a draw- the draw being minimum wage. That way the employee is always paid at least minimum wage. You need to establish a sales commission against draw system right away, and you need to speak with an attorney about what to do to rectify any prior failures to pay minimum wage.

When an employer (YOU) fails to pay minimum wage, they can be liable for the unpaid minimum wage, an equal amount as "liquidated damage" and double interest on the unpaid minimum wage from the date the wage is not paid. In addition there are penalties for failing to provide correct "statements of earnings" (paycheck stubs) of $50 for the first pay period and $100 for each successive pay period that you can be liable for. And this is just for the employees that still work there. If anyone was fired or quit, you could be responsible for up to 30 days of their average daily earnings as a "waiting time penalty."

Wage and hour law is not something to play around with, and you don't get any special treatment because you have also got a relationship with a church.

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