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Worker Self-Directed Nonprofits

December 17, 2023 by Michael Simkins

Someone recently contacted Spokes to say, “I’m thinking of starting a worker self-directed nonprofit. Can Spokes help me?”

A worker self-directed nonprofit? I’d never heard the term. I know about public benefit nonprofits, mutual benefit nonprofits, and benefit corporations, but this inquiry required some research!

The Sustainable Economies Law Center describes a self-directed nonprofit as a sort of cross between a worker cooperative and a 501(c)3 nonprofit. Specifically, it defines a worker self-directed nonprofit as,

a nonprofit organization in which all workers have the power to influence the programs in which they work, the conditions of their workplace, their own career paths, and the direction of the organization as a whole.

In general, a worker cooperative is “democratically managed business that is owned and controlled by the workers.” California corporation code has specific provisions for the formation of a for-profit worker cooperative. California code also has specific, separate provisions for incorporating as a nonprofit. As far as I have learned, California code does not include explicit provisions for something called a worker self-directed nonprofit.

I have lots more to learn on this subject, but it’s intriguing to think about how one might structure a nonprofit within California’s current code that might mimic or embody key features of a worker cooperative such as election of the board of directors. More to come on this topic, but in the meantime, check out these resources:

  • What is a Worker Cooperative?
  • Sustainable Economies Law Center
  • California Worker Cooperatives

Free Human Resources Hotline

December 4, 2023 by Michael Simkins

SLO Cal Careers has partnered with the California Employers Association to provide San Luis Obispo County employers with a no-cost human resources hotline. Get advice on:

  • Hiring and firing best practices
  • Paid sick leave laws
  • Wage and hour laws
  • Employee handbook policies
  • HR compliance
  • Accommodations in the workplace
  • And much more!

HR Directors are available for San Luis Obispo County Employers
Monday – Friday from 8 a.m. – 5 p.m. Call 888.710.0905.

This WIOA Title I financially assisted program or activity is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with disabilities. California Relay Service 711 or 1-800-735-2922 (English) 1-800-855-3000 (Spanish).

Can you fire a volunteer?

August 26, 2023 by Michael Simkins

In a recent Spokes roundtable, the topic of the “dysfunctional volunteer” came up. Most volunteers are valuable assets for or organizations. We couldn’t do what we do without them. But occasionally, we experience a volunteer who is not contributing, or worse, creating a drain on the organization.

There are various forms of dysfunction. A volunteer may promise but not deliver. He may not have the knowledge or skills to be of help. She may distract staff or other volunteers from what they need to be doing.

As with hiring employees, the best approach to recruiting volunteers is to have a sound system for vetting them, learning about their talents and interests, and matching those to the tasks your organization needs accomplished. Sometimes, though, things just don’t work out. For the benefit of both the organization and the volunteer, it may be time to part company.

The following two resources provide sound advice on how to let a volunteer go in the most respectful and productive manner.

  • Yes, You Can Actually Learn How to Let a Volunteer Go – VolunteerPro
  • How and When to Let a Volunteer Go | Nonprofit Blog


Retaining Staff

June 19, 2023 by Michael Simkins

Finding qualified new staff can be very difficult, so at Spokes June 2023 Symposium we focused on how to retain the staff you already have on board. It’s a national problem! Consider:

  • In 2022, a record 50.6 million U.S. workers quit their jobs, accounting for 70% of total separations. This is the highest level in the history of the Job Openings and Labor Turnover Survey (JOLTS), which dates back to 2001.
  • While quits are down from the record highs of 2022, in January 2023 dipping below the four million mark for the first time since May 2021, they were back up to above four million this February.
  • This year, 56% of surveyed U.S. workers said they’re likely to seek a new job compared to 51% in 2022.

Here are some resources recommended by our panel of experts:

  • Working with Emotional Intelligence, by Daniel Goleman
  • The Management Dilemma, white paper from Collaboration Business Consulting
  • Me-To-We: The Shift Every Business Leader Must Make for Lasting Success, by Michael Gunther
  • Start with Why, by Simon Sineks
  • RSA Video: Daniel Pink’s “Drive”
  • Essentialism, by Greg McKeown
  • DEI Deconstructed: Your No-Nonsense Guide to Doing the Work and Doing It Right, by Lily Zheng
  • Racial Justice at Work: Practical Solutions for Systemic Change, by Mary-Frances Winters & The Winters Group Team
  • Inclusion on Purpose: An Intersectional Approach to Creating a Culture of Belonging at Work, by Ruchika Tulshyan

Two Important New Employment Laws

December 17, 2022 by Michael Simkins

Pay Transparency

Among the new employment laws that go into effect January 1, 2023, two deserve special mention. One, referred to as “Pay Transparency,” applies to your nonprofit if you have 15 or more employees. Starting January 1, you’ll need to include pay range information in any job posting. In addition:

  • ALL employers must provide a pay scale to any current employee for their position upon request.
  • Employers must also maintain records of a job title and wage rate history for each employee during employment and for three years after separation from the company
  • All private employers with 100 or more employees must file pay data reports with the State’s Civil Rights Department, regardless of whether they are required to file a federal EEO-1 with the EEOC. (Note: nonprofits are considered “private employers.)

Retirement

The other change has to do with retirement programs. The CalSavers Retirement Savings Program is a state-run retirement program for employees who work for employers not offering a private-market retirement plan, such as a 401(k) plan. Previously, the law only applied to nonprofits with 5 or more employees. As of January 1, it applies even if you have only one employee.

Learn more

Spokes members can view the 60-minute video overview of these and other new HR-related laws for 2023. Sign into your account, click “access member benefits,” and go to the Video Library. You’ll find the recording in the Past Classes showcase. Not a member yet? Check out the member benefits.

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DISCLAIMER: Spokes offers informed advice and recommendations, not professional counsel. Blog content is current as of the date shown. Individual posts are not necessarily updated, so please confirm the accuracy of the information, especially of older posts.

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