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There's currently a interesting legal case before the Oregon Court of Appeals which deals with the giving of "volunteer passes" in exchange for a certain amount of labor.
Quoting from the recently published article (which is appened):
If something with value such as a ski pass is only offered to those who commit to work certain shifts, that's renumeration for a job, said Stephanie Soden, spokeswoman for the Department of Justice.
Quoting from the website of the National Park Service:
America the Beautiful – National Parks and Federal Recreational Lands Pass – Volunteer Pass. This pass is for volunteers acquiring 500 service hours on a cumulative basis.
The federally issued America the Beautiful Volunteer Pass, valued at $80, is offered ONLY to those who have worked 500 service hours.
Is the awarding of such a pass "renumeration" as the lower courts in Oregon have already ruled? If it is renumeration, then do the full spectrum of labor laws apply?
Interesting questions — and an important court case, for sure.
Scott
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July 11, 2007
Appeals Court hears case of volunteer ski passes
Bulletin, The (Bend, OR)
by James Sinks
SALEM - The fate of free ski passes offered to volunteers on the slopes
- and potentially other gifts to people who give their time to
charities - is now in the hands of the Oregon Court of Appeals.
Freebies are a common way schools and nonprofits show appreciation to
people who donate their time, whether it's tickets to a banquet,
clothing or free admission to a concert or sporting event.
But a claim filed by the state against the Bend-based Mt. Bachelor Ski
Education Foundation threatens to turn that practice on its head. A
three-judge panel of the Court of Appeals heard oral arguments in the
case Tuesday. A decision will be released later this year.
The Central Oregon charity teaches kids to ski, and also hosts races at
Central Oregon's popular skiing resort. To attract volunteers to set up
and run those races, the organization provides free annual ski passes.
But when a foundation volunteer - who was jobless - sought unemployment
benefits, the state argued that the ski pass amounts to wages, because
the foundation provided the gift in exchange for service. The state
then pressed to foundation to pay back unemployment taxes.
"People are wondering if they can reward their volunteers with more
than a 'thank you,'" said foundation Director Chuck Kenlen, who
traveled to Salem for the hearing.
He said volunteers need the passes to reach their appointed spots on the slopes.
If the state prevails, it could reduce the amount of unemployment
claims owed to jobless people by showing that gifts given for donated
work amount to income. In addition, it could show that volunteers who
are provided gifts aren't volunteers at all, but employees.
That could put nonprofits on the hook for not just unemployment - but other costs such as minimum wage and payroll taxes.
More likely, it would simply end the practice of nonprofits giving
stuff or meals to their volunteers and board members, said Jeff Eager,
the lawyer for the foundation. And that could make it harder to attract
people to donate their time and expertise, he said.
"That would be catastrophic for nonprofits and charitable institutions in this state," he said.
The state disagrees. If something with value such as a ski pass is only
offered to those who commit to work certain shifts, that's renumeration
for a job, said Stephanie Soden, spokeswoman for the Department of
Justice.
She did not know whether the state will similarly target other largesse
from charities to volunteers. The Employment Department case only deals
with ski passes that are worth hundreds of dollars, she said.
In remarks to the state's attorney, Appeals Judge Jack Landau said he
volunteered at a theater as a child, and was allowed to watch a movie
if there was an open seat.
"At some point, that argument slips into the absurd to me," he said.
For instance, a volunteer at the State Fair would become an employee if
given free admission, he said.
Department of Justice Attorney Paul Smith argued the volunteer was
effectively hired with the promise of a pass as compensation, and Judge
William Riggs appeared to agree. Riggs said a contract, drawn up by the
Mt. Bachelor Ski Education Foundation that says volunteers are not
employees, does not change the fact that something of value was offered
for their work.
The former volunteer, Judy Lear, said in an earlier interview that the
Oregon Employment Department opted to consider the value of the ski
pass as income, over her objections, in an effort to reduce her
benefits.
The foundation challenged the case. The department prevailed in two
previous hearings, once in front of a hearings officer and then in a
preliminary
appeal.
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