Volunteers on the Farm

At recent conferences on agricultural labor, business management, and tax strategy, I’ve heard inspiring stories from producers, advisors, and industry leaders about farm growth, innovation, and bringing new people into farming. These discussions focused on practical steps for long-term success and supporting both new and expanding operations. 

One reoccurring topic, however, surfaced repeatedly and raised some red flags: the use of volunteers on farms. 

While the offer of free help may seem like a win, especially when operating on razor thin margins and time constraints, it can create serious legal and financial risks for farming operations. 

Ohio and federal laws are clear: generally, for-profit businesses cannot rely on volunteers or “free labor.” Even if the individual willingly offers their free time without pay or signs a written agreement stating they expect no compensation, such arrangements do not override the law.  

What the Law Says

The U.S. Department of Labor (“DOL”) enforces the Fair Labor Standards Act (“FLSA”), which establishes key protections including minimum wage, overtime pay, and related standards for workers. 

The FLSA defines “employ” very broadly as “to suffer or permit to work.” This expansive wording is often seen as deliberate, designed to extend coverage to as many workers as possible under the law’s protections. 

That said, the FLSA is clear that genuine volunteers are not employees. However, this volunteer exception applies only under specific circumstances and to certain types of organizations. Individuals may freely donate their time to public service, religious, or non-profit organizations. 

By contrast, the FLSA generally prohibits individuals from providing “volunteer” services to for-profit businesses. The DOL explains that the ultimate goal of a for-profit business is to make a profit and the law will not allow those types of organizations to exploit volunteers, or free labor. 

Non-profit, public service, and religious organizations, on the other hand, are not driven by profit but by a beneficial purpose for the public. For this reason, the law will allow those organizations to utilize volunteers.

There are only narrow circumstances in which a for-profit business may utilize volunteers, and those typically arise when the business sponsors or hosts a public service or charitable event. In such cases, individuals may donate their time to advance the public, religious, or humanitarian purpose, provided the activity does not result in a financial or commercial benefit to the business. 

Key Risks of Misclassifying “Volunteers”

1. Workers’ Compensation and Liability Issues. If a “volunteer” is injured while working on the farm, they may be left with significant and unexpected medical expenses. As those costs begin to accumulate, the injured “volunteer” may start to explore what legal options are available to help ease the financial burden of their good deed.
   
   After a quick online search, the injured “volunteer” may choose to file a workers’ compensation claim hoping that, after an investigation and any necessary hearings, the Ohio Bureau of Workers’ Compensation (“BWC”) and the Ohio Industrial Commission determine the volunteer was misclassified and should have been treated as an employee. If that finding is made, the BWC may provide coverage to the injured worker, and then seek reimbursement from the farm for costs such as medical expenses, lost wages, and unpaid premiums.
   
   Additionally, a farm general liability policy may not cover claims involving misclassified workers or other employment-related disputes. Most policies exclude injuries sustained by individuals who qualify as employees because those claims are typically addressed through workers’ compensation. If a worker is ultimately deemed to be an employee, the situation likely reverts to the scenario described above, or the farm may find itself in court arguing that the injured “volunteer” does not meet the legal definition of an employee. Furthermore, most policies have an “intentional acts” exclusion and if the insurance provider finds that misclassification was deliberate or part of a fraudulent effort to avoid employer obligations, coverage is most likely not going to exist. 

2. Wage and Hour Violations. If a former “volunteer” later asserts they should have been compensated, whether following a personal dispute with the farm owner or after sustaining an injury, the DOL or a court may reclassify that individual as an employee. Such a determination can expose the farm to liability for back wages, unpaid overtime (where applicable), interest, civil penalties, attorneys’ fees, and, in more serious situations, potential criminal penalties. 

3. Tax and Payroll Non-Compliance. Employees give rise to payroll tax obligations, including Social Security, Medicare, and unemployment insurance. Failure to properly withhold and remit these taxes can result in state and federal tax audits, penalties, and potential personal liability for the farm business. 

The Bottom Line

What may seem like generous community support can quickly turn into a costly liability. The goodwill behind a “volunteer’s” intentions does not override the law’s protections for workers. And, practically speaking, when circumstances deteriorate, individuals facing financial strain are far more likely to raise these issues when they feel they have little left to lose.

In most cases, the prudent path is clear: for-profit farms cannot rely on volunteers. Protecting your operation from unnecessary legal and financial headaches is worth far more than short-term “free” labor and helps lay a stronger foundation for long-term growth and stability.