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Nonprofit organizations and workers’ compensation

On Behalf of | Oct 12, 2021 | Workers' Compensation

New Yorkers have workers’ compensation available to them for illnesses and injuries that relate to their jobs. Although these benefits are a legal requirement for employers, do they depend on an entity’s status with the IRS?

Some organizations register as a nonprofit for tax exemption purposes. Charitable organizations might include:

  • Churches
  • Social clubs
  • Political associations
  • Private foundations
  • Recreational clubs

Social welfare programs may also have a tax-exempt status.

As with for-profit business obligations, nonprofit organizations with paid employees must provide workers’ compensation coverage. However, this requirement doesn’t necessarily apply across the board.

Who’s exempt from benefits?

There are circumstances where nonprofits will not provide workers’ compensation coverage.

Nonprofits may receive exemptions on providing coverage for those who:

  • Perform non-manual labor for a designated educational, charitable or religious organization
  • Serve as an executive officer, not involving manual labor, for specific unincorporated associations or not-for-profit corporations
  • Participate in nonprofit amateur sports, with no employment ties to the activity

These exemptions might make the likelihood of receiving compensation for job-related injuries seem bleak for employees of nonprofit organizations. However, legal recourse may remain a possibility.

Negligence often leads to accountability

You have the right to explore your legal options if another party is responsible for your injuries – regardless of your employer. Workers’ compensation sometimes remains the only way for injured employees to get their needs met. Still, a personal injury claim may lie within the realm of possibility for those who hold jobs with exemptions.

There’s no obligation for a chance to learn whether you have grounds for a lawsuit. Why not take the time to see whether you can protect your interests?