By Linda Bashwiner and Steven Galeotti
Our guest bloggers today are Steven Galeotti and Lydia Barbara Bashwiner. Steven Galeotti, ARM, Principal of SRM Consulting, sgaleotti@srmconsulting.net. Steve has over 32 years experience in risk management and risk control consulting with significant expertise in risk assessment and Enterprise Risk Management. He has developed a methodology for assessing business risk in organizations. He has made presentations to the National Association of College and University Business Officers, the Risk and Insurance Management Society and other national organizations.
Lydia Barbara Bashwiner, Esq. is the General Counsel and Claims Manager for Otterstedt Insurance Agency, Inc. Englewood Cliffs, NJ. She is a licensed New Jersey attorney, and a licensed property and casualty producer. She holds the professional designations of Certified Workers’ Compensation Professional and NJ Workers’ Compensation Professional.
Do you have any unpaid students working within your organization? If so, are they working toward a degree? Do you have any unpaid workers who are not students? Regardless of whether the unpaid worker is a student, what are risk management consequences of having unpaid workers in your facility?
While the National Labor Relations Board (NLRB) ruled in 1999 that unpaid workers are not employees because they do not work for compensation or the expectation of compensation, the Department of Labor (DOL) has recently issued several opinion letters regarding volunteers and students. These opinion letters state when volunteers and students are considered employees and subject to minimum wage and overtime laws. In order for an employer to avoid paying a student or volunteer, six requirements must be fully met (see sidebar on next page).
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