On January 6, 2026, the California Court of Appeal (First Appellate District, Division Five) issued a published decision in Spilman v. The Salvation Army (A169279) that adopts a new framework for distinguishing volunteers from employees in the nonprofit context. The decision reshapes the way nonprofits should evaluate their volunteer programs, particularly where volunteers perform substantial work tied to revenue-generating operations.
The court confirmed that nonprofits may, in appropriate circumstances, rely on unpaid volunteers without triggering California minimum wage and overtime requirements. But it rejected the trial court’s narrow focus on whether there was an agreement to pay compensation. Instead, the court introduced a structured, two-part test for determining when a nonprofit worker is a ‘bona fide volunteer’ versus an employee under California wage orders.
Case Facts and Trial Court Holding
The plaintiffs participated in the Salvation Army’s six-month residential substance abuse rehabilitation program. Program participants received room and board, meals, clothing, small gratuities, and social services such as counseling and religious programming. In exchange, participants were required to perform “work therapy,” generally full-time, performing typical retail/warehouse tasks (e.g., unloading trucks, sorting donations, stocking, and assisting customers) to support the Salvation Army’s thrift-store and warehouse operations. Participants were prohibited from...
A Massachusetts man was arrested this week and accused of impersonating an Army veteran for more than three decades, receiving tens of thousands of dollars in VA medical care and committing crimes...