NEWS: Volunteers at California Wineries Often Illegal

I was surprised to learn that all those tasting room "staff" who volunteer and get paid in wine are in violation of California labor law. Unusually for this sort of thing, the law is crystal clear: a volunteer is "an individual who performs work for civic, charitable, or humanitarian reasons for a public agency or corporation qualified under Section 501(c)(3) of the Internal Revenue Code as a tax-exempt organization, without promise, expectation, or receipt of any compensation for work performed." That clearly rules out ordinary companies. There are further restrictions on how a volunteer can't receive de facto compensation.

In Livermore, this awareness is having some consequences. The owner of Westover Vineyards (in Palomares Canyon, just west of Livermore) announced that "we have decided to retire," after about 30 years of winemaking.

There's more in this article from the LIvermore Independent:

Wendell Lee, General Counsel for the Wine Institute, suggested that wineries using volunteers consult with an attorney familiar with labor laws. He noted that the use of volunteers by a for-profit business can lead to labor code violations. The penalties can be very severe. Minimum wage, payroll taxes and workman's comp are all triggered. The volunteers cannot be paid with wine.

I am not a lawyer, but it seems like a big deal to me. Interns are still allowed, but those come with their own set of restrictions. Unpaid internships have to primarily benefit the student, and have a significant educational purpose. I can see that happening with winemaking students, who come to learn as much as help out with harvest, crush, cellar work, etc., but it's hard to argue that the folks operating a tasting room and getting paid in wine are being educated in the same way. I also don't know what the law is in other states.

[Robin Garr]

I was surprised to learn that all those tasting room "staff" who volunteer and get paid in wine are in violation of California labor law.

As a card-carrying liberal I tend to favor legislation that protects workers, Walter, but in this case I feel a little more like a libertarian. Assuming that the tasting room workers honestly "volunteer" for the work and do it because it's fun, and because wine, there surely ought to be an option for them to waive the regs and do a job they like for a form of compensation that they enjoy. And if not, then as Dickens said, "The law is an ass, an idiot."

[Jenise]

I'm not aware of any laws volunteering would violate in the state of Washington, but whether you're paid or unpaid if you're working in the tasting room you better have a pouring license. Said license proves that you understand how to not overpour and when to refuse service.

Robin, I am just a flat out libertarian, and I agree it seems overly strict in this case. I've volunteered myself at our local festival, and it's true that it's work, but people do it for fun and to pick up a few perks on the side, not an income.

The thing is, there are so many crooked or even slightly bent employers out there that will skirt the rules if they aren't clear. I had a job once that was clearly an employee situation, one where the employer directed my work, provided the office space and equipment, etc. However, he gave me a 1099, as if I were an independent contractor. I had to pay the employer portion of Social Security, and who knows if I would have been eligible for worker's comp in the event of an injury. I can see a crooked winery claiming that all its staff were just "volunteers" and getting out of paying all those pesky taxes and wages.

Jenise, as far as I know this is a California law, but it could apply to other states as well.