By Richard R. Hammar, J.D., LL.M., CPA
© Copyright 1990, 1998 by Church Law & Tax Report. All rights reserved. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Church Law & Tax Report, PO Box 1098, Matthews, NC 28106. Reference Code: m81 m35 c0290
A South Carolina state appeals court ruled
that a construction company president who donated his labor in
constructing a new church was not eligible for workers'
compensation benefits following an injury on the job. The court
noted that workers' compensation benefits are available only to
"employees," and that state law defined the term "employee" as one
who works for wages under a written or oral contract of hire. The
injured worker in this case "donated his labor in the construction
of the church. There is no evidence he was paid wages or had a
right to demand payment. There is also no evidence [that he]
entered into a tithing agreement with [the church] so that his work
could be considered as a credit toward his tithe obligation. We
find no evidence of an employment relationship between [him and the
church]. He was not hired by [the church] and he was not performing
any paid service for [the church]." As a result, the court
concluded that the worker "was a volunteer and not an employee"
under the state workers' compensation law. Accordingly, the church,
through its workers' compensation insurance carrier, was not
obligated to pay benefits to the injured worker. McCreery v.
Covenant Presbyterian Church, 383 S.E.2d 264 (S.C. App. 1989).