• Menu
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

  • About
  • Contact
  • Privacy
 
ARCADIA: Stronger Settlement Partnerships. Innovative Solutions.

Amaxx Workers Comp Blog

Reduce Workers Compensation Costs By 20-50%

Header Right

  • Home
    • Training Center
  • Search
    • Free Resources & Solutions
    • Subscribe to Free Newsletter
    • Create Free Training Center Account
    • Enroll in On-Demand Courses
    • Activate WC Mastery Membership
    • Request Strategic Coaching Session
    • Buy WC Guidebooks
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
    • Coaching
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login

Mobile Menu

  • Home
    • Training Center
  • Search
    • Free Resources & Solutions
    • Subscribe to Free Newsletter
    • Create Free Training Center Account
    • Enroll in On-Demand Courses
    • Activate WC Mastery Membership
    • Request Strategic Coaching Session
    • Buy WC Guidebooks
  • Membership
    • Insider (free account)
    • WC Mastery
    • Teams & Managers Mastery
    • Training Partners
  • Products
    • On-Demand Courses
    • Specialty Courses
    • Certifications & Mastery Courses
    • Ultimate Guidebooks
    • Coaching
  • Blog
    • Video Blogs
    • COVID-19 / Coronavirus Pandemic
  • Login
  • About
  • Contact
  • Privacy
You are here: Home / Buyers Guide: Workers Compensation Insurance / Buying Workers' Comp / Volunteers and Workers Compensation

Volunteers and Workers Compensation

February 3, 2011 By //  by Rebecca Shafer, J.D. 1 Comment

One area of workers compensation that varies significantly from state to state is how volunteers are treated by the workers compensation statutes. While employees are almost always covered for workers compensation, work comp coverage for volunteers is not mandatory in most states. The different states do not even agree on whether or not a volunteer is entitled to workers compensation benefits. In the states that do allow workers compensation benefits for volunteers, there is no uniformity of what constitutes a volunteer. Therefore, this discussion of volunteers and workers compensation will be generic.

While volunteers can be found in almost any type of business, they are most often associated with charitable organizations, religious organizations, non-profit organizations, hospitals and governmental departments – like volunteer firefighters, paramedics, forest service and parks. (Some states that do not recognize volunteers as employees make exceptions for volunteer firefighters covering them as employees while not covering other volunteers).

Click Link to Access Free PDF Download

“How to Calculate Your Minimum Experience Mod, Controllable Premium & the Revenue Impact”


Workers compensation is meant to cover employers for employees who are injured while working. A volunteer, is not an employee, but is providing a benefit to the employer. By definition, a volunteer is a person who provides services without the expectation of compensation or any kind. To be a true volunteer, the person providing the volunteer service – not the employer – determines when the volunteer works, both how often and how long. If the employer is setting precise hours, and treating the volunteer as an employee in every way except compensation, some states will consider the individual an employee not a volunteer.

The first question the workers compensation insurer will ask when a work comp claim is presented for a volunteer is: Does the volunteer receive any form of compensation? Compensation does not mean a salary or hourly wages. Compensation in the case of a volunteer can be anything – a living allowance, a discount not available to others, vouchers, room and board, a stipend, certificates, credits, etc. If the volunteer receives any benefit in exchange for the volunteer service being provided, the volunteer will be treated as an employee. If the volunteer does not expect to receive anything of value for the services being provided, than the person is truly a volunteer for the purposes of workers’ compensation.

When a volunteer is covered by the workers compensation statutes of the state, the medical benefits provided by workers compensation will be the same as the medical benefits of a regular employee. The question that often comes up is how are indemnity benefits handled for a volunteer that is unable to resume their volunteer duties for the employer? Different states handle this in different ways. Some states will require the insurer to pay the volunteer the state minimal indemnity amount per week. In some states the employer and/or insurer will try to calculate the value of the volunteers services to establish a value for disability payments. Other states provide the volunteer with no indemnity compensation, just medical benefits.

Some states, for instance California, allow employers to “opt in” for workers compensation coverage of their volunteers, regardless of whether or not the volunteers receive any benefit from their volunteer work. This is beneficial to the employer as it eliminates the potential for an injured volunteer bringing a tort claim against the employer for an injury.

The workers compensation insurer bases its premium calculation on the gross payroll for the employer. The volunteer, who is receiving no pay, is not included in the premium calculations, but increases the insurers exposure to claims. This can create issues with the insurer when they are paying the work comp claim of an injured volunteer. If an employer knows it will have volunteer workers, the employer should make that fact known to the insurer to prevent a coverage dispute from erupting after a work comp claim is filed.

While adding volunteers with the work comp insurer will increase your work comp premium, it is better to have the workers compensation coverage than to be exposed to the volunteer bringing a liability lawsuit against your company. If the volunteer brings a tort action against your company, their potential monetary recovery is much higher than it is under work comp. In a tort claim, not only does the volunteer have the potential to recover their medical cost, they can recover for any pain and suffering they have endured as a result of the injury.

FREE DOWNLOAD: “How to Calculate Your Minimum Experience Mod, Controllable Premium & the Revenue Impact”

If you have volunteers working for your organization or business, you need to familiarize yourself on how your state treats volunteers when it comes to workers’ compensation. Please consult with your state workers’ compensation agent, broker, board or industrial commission on how volunteers are handled for the purpose of workers’ compensation in your state.

Author Rebecca Shafer, JD, President of Amaxx Risks Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker and website publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. www.LowerWC.com
Contact: RShafer@ReduceYourWorkersComp.com .

WORK COMP CALCULATOR: http://www.LowerWC.com/calculator.php

MODIFIED DUTY CALCULATOR: http://www.LowerWC.com/transitional-duty-cost-calculator.php

WC GROUP: http://www.linkedin.com/groups?homeNewMember=&gid=1922050/
SUBSCRIBE:
Workers Comp Resource Center Newsletter

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.

©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law.

FREE DOWNLOAD: “How to Calculate Your Minimum Experience Mod, Controllable Premium & the Revenue Impact”

Filed Under: Buying Workers' Comp Tagged With: Workers Comp for Volunteers

Related Articles

Buyer Beware – 5 Things To Know About Lowest Work Comp Bidder

Buyer Beware – 5 Things To Know About Lowest Work Comp Bidder

Maximize ROI of Workers’ Comp Management Improvements with the Right Insurance Structure

Maximize ROI of Workers’ Comp Management Improvements with the Right Insurance Structure

8 Steps For A Staffing Agency to Reduce Workers Comp Costs

8 Steps For A Staffing Agency to Reduce Workers Comp Costs

A Statutory Employer Becomes Actual Employer By Law

A Statutory Employer Becomes Actual Employer By Law

Avoid Problems With Out of State Workers Comp Claims

Avoid Problems With Out of State Workers Comp Claims

State Risk Pool Is Option for All Employers, Not Necessarily Where You Want To Be

State Risk Pool Is Option for All Employers, Not Necessarily Where You Want To Be

If You Can Not Get Workers Comp Coverage, Look to the State Fund

If You Can Not Get Workers Comp Coverage, Look to the State Fund

Oklahoma Insurance Commissioner Notes NCCI Decrease Cost Request

Oklahoma Insurance Commissioner Notes NCCI Decrease Cost Request

Eight Things to Know About Professional Employer Organizations (PEO) to Lower Workers Comp Costs

Eight Things to Know About Professional Employer Organizations (PEO) to Lower Workers Comp Costs

Florida Man Arrested in Workers Comp Scheme

Florida Man Arrested in Workers Comp Scheme

Georgia Workers Compensation Basics

Georgia Workers Compensation Basics

Ohio Workers Compensation Basics 101

Ohio Workers Compensation Basics 101

Free Download

How to Calculate Your Minimum Experience Mod, Controllable Premium & the Revenue Impact - FREE Download Click Here Now!

Train to Succeed

BECOME CERTIFIED IN WORKERS’ COMPENSATION

Proven Course Catalog & WC Toolbox Give You The Power To Achieve Lower Costs and Better Injured Worker Outcomes

VISIT WORKERS' COMP TRAINING CENTER

Previous Post: « Ohio BWC Board Praised for Effort To Employers and Workers
Next Post: Australian Charged Under Federal Industrial Laws Aquitted »

Reader Interactions

Comments

  1. Raymond Wheeler

    March 11, 2017 at 3:51 pm

    Hi your article was very helpful. Would like a column on my website? Or could I use your link on my website? It will always give you 100% credit.

Leave a Reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

FREE DOWNLOAD

How to Calculate Your Minimum Experience Mod, Controllable Premium & the Revenue Impact - FREE Download Click Here Now!

Our Sponsors

ARCADIA - Enhancing Settlement Outcomes

The Structured Settlements Company
 

Catastrophic and Risk Solutions, Case Management Solutions, and Specialty Networks
 

MSAs, Section 111 Audits, & Conditional Payment Resolutions
 

Post-Settlement Administration
 

Medcor

Injury Triage, Onsite Clinics

Read Our Award-Winning Blog

Blog Categories

Search Our Archive

Subscribe to Our FREE Newsletter

Return-to-Work Essentials

Footer

Search Our Archive

Search our continually growing archive of over 2500 articles about Workers' Comp issues.

Quiclinks

  • Calculators
  • Terms & Abbreviations
  • Glossary of WC Premium Terms
  • WC Resources
  • Best Practices
  • Industries
  • Return-to-Work Essentials

RSS Recent Blog Posts

  • WC Cost Containment For The Claims Management Team
  • Dealing with Long COVID in Work Comp
  • Common Mistakes: Medical Care and Accepting Every Claim – Article 3 of 3
SUBSCRIBE TO OUR FEE NEWSLETTER
Let Us Help You Stomp Down the High Cost of Workers' Comp!
Top of Page ↑
  • Home
  • Training Center
  • Search
  • Membership
  • Products
  • Blog
  • About
  • Contact
  • Subscribe
  • Login
Copyright © 2023 Amaxx, LLC. All Rights Reserved. · Privacy Policy / Legal Notice