Use of Volunteers at Wineries...

Wineries using unpaid help in tasting rooms or sorting tables seems to be common practice. Wineries in Livermore often use volunteers who get paid in wine or do so for access/perks, including several of my friends. Wineries engaging in this practice might want to read this article in The Independent:

At least one local winery has been hit with fines and penalties for using volunteers in its operation, raising concerns that other wineries may face similar action.

According to California labor laws, to volunteer legally, an individual must offer his or her services to a public agency or nonprofit organization. Businesses may not legally utilize volunteers. Government and nonprofits are exempt from the law.

California wineries are now finding out that they can be required to pay back wages and huge penalties going back three years. Some wineries and other small businesses have seen penalties and back wages for volunteers going over $100,000.

I realize that anybody volunteering is doing so as a hobby or favor to friend, but the upshot is that this doesn’t exempt a for-profit business from labor laws, minimum wage laws, and workman’s comp. While I think this is an area where the gov’t could easily just look the other way, the winery owner quoted in the article seems to me a bit too entitled in his belief that his business should be exempt from these laws.

Thoughts?

What is the difference between a volunteer and an intern from an oenology program at an accredited university?

Does the intern get paid as part of their classwork? I honestly would like to know as I have 'volunteered" to work the 2014 Napa Crush.

Bill, thanks for responding. I thought this might generate a lot of discussion, but understandably wineries are busy with earthquakes or otherwise, harvest, and would understandably not want to talk in a public forum about a widespread practice which may be illegal.

To your question, IANAL but it seems the difference between a volunteer and an intern is a very specifically defined legal area:
http://www.fentonkeller.com/resources/workplace_law/2009/april_2009_volunteering_in_the_workplace.htm

It’s funny that searches on this subject pretty much all turn up information on volunteering to help some stricken 3rd world community. Us and our first-world problems!

Indeed, but I think this is a question for the winery, not so much an issue for you. Frankly this has to be such a minor issue (upper class donating spare time to help make wine) I can’t believe it’s not simply ignored by the labor board (and I guess usually is) which makes me wonder what the quoted winery owner did to get the attention of authorities. OTOH if a volunteer were to get seriously injured or die while working (suffocation in a fermenter?) this issue would go from gray area to hot water really quickly

Here is the text of the letter Westover vineyars sent folks on their mailing list -
Westover Vineyards
Dancing COWs

Important Announcement




Westover to start process
of closing the tasting room and ending the C.O.W./P.L.O.W. clubs



We will start selling off inventory this weekend.

All wines will be at least 40% off and ports 50% off
until our inventories are liquidated.



Unless a miracle happens, we plan to go out of business December 24, 2014

Recently the labor department fined our winery over $100,000 for having volunteers serving our customers. There is a California State law 1720.4, which says, “volunteers are illegal in the state of California.” Almost all wineries use volunteers for one thing or another and many are not aware of this law. We are not the first winery to be hit. It appears to many that our state is declaring war on wineries and other small businesses.

Bill spoke with state assemblyman Wieckowski, a former attorney and representative of Fremont and surrounding area. He stated he was not aware of the law and he could not think why the labor department wouldn’t simply issue a cease and desist order to get things legal. He commented, “government should not be in the business to put small businesses s out of business.”

We are also working with Assembly member Quirk and hope to meet with him in October.

What can you do?

Come by the winery and purchase wine - help liquidate our inventories so we can pay the outrageous fines. Our winery only grossed $200,000 last year and the penalties equal about 10 years of net profits.

Contact your local state assembly members and senators via both their website and telephone and ask them to introduce legislation to change the law in California.

What we are proposing for legislation:
A. Provide the same labor exemption for small wineries and businesses which are extended to non-profits and government entities which allows for volunteers in the State of California.

B. Make it law that the State of California must first issue cease and desist orders for small business violations and allow businesses to get legal before any fines. Only after they have been warned can they be penalized for further violations.

C. Require the State of California Department of Labor be proactive and go out of their way to do outreach, inform all businesses of the state law.

How to contact local California State Senators and Assembly Members:

Assembly Member Bill Quirk
Fremont, Sunol, San Lorenzo, Hayward etc…
District Office
22320 Foothill Blvd, Suite 540
Hayward, CA 94541
Tel: (510) 583-8818
Fax: (510) 583-8800

Senator Ellen Corbett
San Leandro, Pleasanton, Fremont, Santa Clara. etc.
District Office
1057 MacArthur Blvd. Suite 206
San Leandro, CA 94577
Tel Phone: (510) 577-2310
Tel: (408) 286-0329
Fax: (510) 577-2308

Assembly Member Joan Buchanan
Alamo, Livermore, Contra Costa…
District Office
Second Monday of every month, 1pm - 4pm
Livermore City Hall
1052 S. Livermore Ave.
Livermore, CA
Tel: (925) 328-1515
Fax: (925) 328-1514

Senator Mark DeSaulnier - Livermore, Contra Costa…
District Offices
1350 Treat Blvd, Suite 240
Walnut Creek, CA 94597
Tel: (925) 942-6082

420 W. 3rd Street
Antioch, CA 94509
Tel: (925) 754-1461

Assembly Member Bob Wieckowski
Fremont, Santa Clara, Pennisula, etc.
District Office
39510 Paseo Padre Parkway
Suite 280
Fremont, CA 94538
Tel: (510) 440-9030
Fax: (510) 440-9035

If your State Senator or Assembly Member is not listed above, please contact us or look them up on the internet.

We will be open for our liquidation sale for the rest of the year, Saturdays and Sundays 12pm - 5pm and by appointment. We will also be open on Labor Day. We will be selling glasses of wine at 50% off and maybe a limited tasting list.

We appreciate your support. If you have any questions, please contact us.

Sincerely,

Bill and Jill Smyth, Owners

Westover Winery & Palomares Winery
34329 Palomares Road
Castro Valley, CA 94552
(510) 537-3932
bill@westoverwinery.com
jill@westoverwinery.com

I don’t think unpaid internships exist here. Either you get a low (but liveable) wage for your first harvest or you get a lower wage with provided housing and/or meals.

Careful use of acronyms is always prudent in an online forum. Especially when you live in the Bay Area. [oops.gif]

I’m a little slow this morning [scratch.gif]

Definitely sounds like the fine was way out of proportion to the violation.

I’ve had just a bit of experience dealing with California labor issues. In a nutshell, the laws are very pro-employee/anti-business; moreso than any other state. Hard not to sympathize with the wineries that are impacted by this decision.

I’ve talked to a couple winery owners and some “volunteers” from Livermore tasting rooms, and it looks like everyone is switching to paid labor only, in the wake of the Westover issue.

You have some serious problems, my friend.

Do restaurants have similar issues with stagiaire in CA?

I think that any winery owner that allowed “volunteers” to work is crazy. The level of liability for people operating equipment that are not covered by worker’s comp is huge!!!

Volunteers don’t normally operate equipment. They pour some wine in a glass, or stand at a sorting table, or apply labels during bottling. In other words, low skill labor that takes time, energy, and bodies that the winery might not normally have.

I am curious why these “employees” need to be on the payroll and have taxes paid/withheld, instead of being considered contractors and just being paid a wage and given a 1099.

I would be curious to know if volunteers are legal labor for any business in any state.

Does bartering labor for wine or food count as payment?

Within this question is there a distinction between “for profit”, “non-profits”, and “public” institutions? The reason I ask is that many retirees volunteer their time for different causes.

My tax guy said Im not allowed to barter stuff within the context of the winery business and have to treat it like wages

And the same is true in the Westover case.

I have 4 friends who work Livermore tasting rooms semi-regularly (a couple Sundays a month) and it’s typical for them to take home a couple bottles of wine for their troubles and enjoy discounts at the winery. The former is being discontinued everywhere I know.