Can a for-profit business make use of unpaid volunteers?

It is highly unlikely. The organization generally would have to be nonprofit. When determining whether one is a volunteer, the controlling factor is the intent of both the business and the potential volunteer. Coercion must not be present.

If the person intends to volunteer his/her services in the spirit of devotion, self-sacrifice or service to the needy, that person is not an employee. 

If the person is performing tasks that might otherwise be performed by an employee, it is not likely that such a person could be a volunteer. Because of the tacit threat of adverse action, employers and employees seldom deal with each other on an equal footing, creating a serious question about someone’s intention.

On the other hand, members of charitable, medical, religious or volunteer social organizations usually are involved out of a sense of duty and obligation.

Donated Services

Volunteers may be persons who intend to donate their services to religious, charitable or similar nonprofit corporations, without contemplation of pay and for public service, religious or humanitarian objectives. The individual is not an employee of the religious, charitable or similar nonprofit corporation that receives the services.

When the religious, charitable or nonprofit corporation operates a commercial enterprise serving the general public, however, such enterprises are subject to the Industrial Welfare Commission orders, and persons performing services therefore would have to be employees.

In certain circumstances, a regular employee of such an organization may donate his/her services as a volunteer. Such services may not be the usual duties of the employee’s job, however.

Public Project

There are times when members of a community may desire to donate their time and energies to the completion of a certain public project, such as a park or playground. The Legislature created an amendment to the state’s public works laws to recognize such volunteerism.

Section 1720.4 of the California Labor Code recognizes and allows the work of volunteers on public works projects as an exemption to the prevailing wage requirements of the statute.