HR Basics for Youth Sports Clubs and Coaches

Many clubs begin with one team and grow into a facility lease and a handful of paid coaches. Before long the club is an employer, whether anyone planned for that or not. Here are the HR areas that come up most often.

Are your coaches employees or contractors?

Many clubs pay coaches as independent contractors by default, often with a line like "contract coach" in the job post. That is not what decides it. The IRS looks at how the work actually runs, and it groups the facts into behavioral control, financial control, and the relationship of the parties.

Questions to ask about each coach:

• Do you set their schedule, practice times, and locations?
• Do you tell them how to run training, what curriculum to follow, or what to wear?
• Do you supply the equipment, fields, and facility?
• Are they working mainly for your club, or do they run their own training business and serve many clients?

A coach who follows your program, at your facility, on your schedule, using your equipment, often looks like an employee. A trainer who runs their own business and sets their own methods may be a contractor. I wrote a longer explanation in Employee vs Independent Contractor in Texas. If you are unsure, the IRS lets you ask for an official determination on Form SS-8, though it can take time.

Misclassification can mean back payroll taxes, unpaid overtime, and penalties, so get it right early.

Pay rules for coaches who are employees

If a coach is an employee, the Fair Labor Standards Act and your state wage laws apply. The Department of Labor explains the basics of the employment relationship. A few practical points:

• Track all hours worked. Practices, games, meetings, required trainings, and travel between sites during the workday can count. Paying a flat amount per session does not remove the need to track time.
• Minimum wage and overtime rules can apply to part-time coaches, depending on how they are paid and which exemptions fit your business.
• Pay on a regular schedule and keep payroll records. In Texas, the Payday Law sets minimum payday rules.

Volunteer rules are not the same for every kind of organization. A nonprofit and a for-profit club are treated differently, and a for-profit business generally cannot treat people who work for it as unpaid volunteers. If your club has any mix of paid staff and "volunteers," check the rules before you continue.

Background checks done the right way

Screening anyone who works with children is basic. How you do it matters too. If you use a background check company, the federal Fair Credit Reporting Act has requirements for written notice and consent, and for what you must do if you decide not to hire someone based on the report. The EEOC's page on background checks explains what employers need to know, and its guidance on arrest and conviction records covers how to avoid screening practices that unfairly shut people out.

A simple approach:

1. Decide in writing what you screen for and for which roles.
2. Apply it the same way to every person in that role.
3. Look at the nature of the offense, how long ago it happened, and how it relates to the job.
4. Keep screening results in a confidential file, separate from the regular personnel file.

I would also check what your league, insurer, or governing body requires. Many have their own rules.

Safety training and abuse reporting

If your club is affiliated with a national governing body for an Olympic sport, federal law gives adults who are authorized to interact with amateur athletes a duty to report suspected child abuse of a minor athlete to law enforcement and to the U.S. Center for SafeSport. You can see the statute at 36 U.S.C. 220542. The U.S. Center for SafeSport publishes policies and training, including limits on one-on-one contact between adults and minor athletes. Ask your league what it requires of your coaches.

Texas also has a general rule that applies to everyone. Under the Texas Family Code, a person who has reasonable cause to believe a child has been abused or neglected must report it immediately. The Department of Family and Protective Services explains when and how to report. Put that in your coach agreement or handbook, and tell your coaches who to call.

Put the basics in writing

You do not need a 60-page manual. A short handbook or coach agreement should cover:

• Role, pay, and how hours are tracked.
• Code of conduct, including how coaches communicate with players and parents.
• Rules about one-on-one contact, travel, and social media with minors.
• How to report concerns, and a clear statement that retaliation is not allowed.
• Injury and incident reporting.

Add an acknowledgment page that each person signs. If you want help on what to include, see Texas Employee Handbook. For injuries, read about the workers' comp choice in Texas Workers' Comp: Non-Subscriber Basics, and ask your insurance agent about liability coverage for the club as well.

Handle parent complaints the same way every time

Set up one clear path: who receives a concern, how it is written down, and how you respond. If a complaint involves a coach's behavior toward a child, act to keep the child safe first and follow your reporting duties before you worry about a perfect investigation.

Frequently asked questions

This article is general information and is not legal advice. Child safety and classification issues carry real risk, so please speak with an employment attorney and your insurance agent about your club.