28 NOVEMBER / DECEMBER 2018 HUMAN RESOURCES Debra A. Mastrian Partner SmithAmundsen LLC dmastrian@salawus.com SmithAmundsen LLC is a Diamond Associate Member of the Indiana Bankers Association. Volunteerism Practical and legal considerations Corporate social responsibility (CSR) has become increasingly important to customers and employees, especially millennials, who will make up the majority of the workforce in the next decade and reportedly value the social impact of their careers above economic factors. One aspect of CSR is volunteering. When volunteer programs and opportunities are assimilated with an employer’s core values and goals, it helps employees feel more connected with the community and the business. Encouraging employees to volunteer not only benefits the community and an employer’s public image, but also builds camaraderie and keeps employees engaged. Studies show that employees have greater job satisfaction and commitment to employers that participate in civic and charitable causes. Thus volunteerism helps reduce employee turnover which, in turn, increases overall profitability of a business. Volunteer activities performed by representatives of a financial institution that have community development as their primary purpose may be considered community development services that result in credit under the Community Reinvestment Act, if the activities relate to the provision of financial services. Examples of such activities are included in the Interagency Questions and Answers Regarding Community Reinvestment and include, among other services, providing assistance on financial matters to organizations serving low- and moderate-income housing or economic revitalization and development needs; providing technical assistance on financial matters to small businesses or community development organizations; and teaching financial education curricula for low- or moderate-income individuals. Employers must be mindful of the Fair Labor Standards Act (FLSA), which sets standards for minimum wage and overtime for non-exempt employees. The FLSA requires employers to pay non-exempt employees for all hours which they are employed. The term “employ” is defined broadly as “to suffer or permit to work.” In other words, if an employer requires or allows an employee to work, the time is generally considered hours worked and must be paid. Any time spent in physical or mental exertion controlled by an employer and primarily for the benefit of the employer and its business must be paid in accordance with the minimum wage and overtime requirements of the FLSA. However, the law recognizes the importance of participating or volunteering in charitable and civic events. Time spent voluntarily (not at the employer’s request or under the employer’s direction or control, or while the employee is required to be on the employer’s premises) in civic and charitable work outside the employee’s normal working hours is not hours worked for which an employee must be paid. 29 C.F.R. § 785.44
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