The Common Law
Nonprofit Organizations Additional Legal Issues
By Luke Ellis, Fri., July 30, 2004
Yes, in certain circumstances. Texas is considered an "employment at will" state, which means that, as a general rule, an employer can fire an employee for a good reason, bad reason, or no reason at all. The "employment at will" rule applies to nonprofit organizations.
There are, however, several exceptions to this rule that you may want to think about. For example, if the nonprofit organization had a specific employment contract with the employee, it's possible that the organization violated a term of that agreement by firing the employee. Additionally, it is unlawful for any employer, including nonprofit organizations, to fire an employee on the basis of a discriminatory reason like race, religion, disability, sex, or national origin. Because there are other exceptions to the "employment at will" doctrine, a nonprofit organization that is concerned it may be sued for wrongful termination should speak with a licensed attorney about the matter.
How does a nonprofit organization change its registered agent and address?
A nonprofit must notify the Texas Secretary of State in order to change its registered agent and address. The forms for filing the notice are available at the secretary of state's Web site (www.sos.state.tx.us). The fee for filing the registered agent and address change is $5. Remember that, for numerous reasons, it is important to keep a nonprofit organization's address current. For example, if a nonprofit never receives notice of a lawsuit because the notice is sent to an outdated address, it is possible that a default judgment could be taken against the nonprofit organization.
This column concludes the month long series on legal issues facing nonprofits. Anyone interested in more information on this subject should contact Greenlights (www.greenlights.org) or Texas CBAR (www.texascbar.org). Each of these organizations provides excellent resources for nonprofits.
During August, the "Common Law" column will address landlord and tenant issues, so be sure to submit any questions, issues, or suggestions regarding this topic.
Please submit column suggestions, questions, and comments to [email protected]. Submission of potential topics does not create an attorney-client relationship, and any information submitted is subject to being included in future columns.
Marrs, Ellis & Hodge LLP, www.mehlaw.com.
The material in this column is for informational purposes only. It does not constitute, nor is it a substitute for, legal advice. For advice on your specific facts and circumstances, consult a licensed attorney. You may wish to contact the Lawyer Referral Service of Central Texas, a non-profit public service of the Austin Bar Association, at 512-472-8303 or www.austinlrs.com.
