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About Timmy Chou
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I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".

 
   

You are here:  Experts > Business > Corporate Law > Arbitration/Mediation > Nepotism

Arbitration/Mediation - Nepotism


Expert: Timmy Chou - 2/24/2008

Question
I searched for nepotism in hiring practices and a link came to a response you had offered once.  I'm hoping your business experience can be of help to me.

Recently I participated in a hiring process run by the executive committee of a Camp Ministry.  This committee consists of the Board President, Vice President, Secretary, Treasurer and the Executive Director.  When I interviewed for the position all of these people were present.  I learned later that the son of the Executive Director was hired.  I also received a letter from the Executive Director explaining that his son was "uniquely qualified" because of a "lifetime of observation".  He also noted his son's 10 years of paid and volunteer service (I have at least 12 years) at the camp.  The minimum requirements for the position were "a bachelor's degree, camping experience, resident housing (ie, you must live there), 2 years of work experience preferably in youth work or ministry."  I have a M. Div. (Masters of Divinity), I have at least 12 years camping experience, I have worked for the last 6 1/2 years as a youth pastor.  The Executive Director's son has worked as a school teacher, has his bachelors degree, and has done limited volunteer youth work.



It has also come to light that part of the son's 10 years paid and volunteer service at the camp is the result of unadvertised positions (Landscaping) that were created specifically for him during the summer time when he had no teaching responsibilities.



Is this a legitimate case of nepotism or was he properly hired?



Thank you for your time,

Mark Ginter

Answer
Thank you for your question.

The answer to your question is probably BOTH.  I would have advised this hiring committee that if they were going to choose to hire the ED's son, than they have a GREATER burden to prove his unique qualifications above and beyond the requirements stated.  Vague, non-qualified statements such as the "lifetime of observation" qualification certainly are specifically discriminatory (how, pray tell, would you or any other candidate be able to meet this so-called standard? . . . and if you cannot, why is this being considered?)

All this said, I would have to compare the process with the Bylaws or governing documents of the organization to see if they have the latitude to pretty much do what they want (which they probably do).  

You may have some leverage as any 501(c)(3) non-profit has a duty to avoid self dealing and nepotism.  The tax exempt status requires it, and there are very detailed reporting requirements every year when tax returns are filed to disclose violations.  I would think that the IRS non-profit corporation enforcement division would take issue with this obvious inside job.

Your state corporations regulatory body may also have some rules around this matter as well.  

Non-profits have a duty to follow US Dept of Labor regs as well, and you may wish to call them and explore your options.  You may be able to file a labor claim with them and the good news is that it is free.

It may be useful for you to consider that right and wrong are not always the most useful places to begin in dealing with these sorts of problems.  There is always a cost to exacting justice and the costs can be quite high.  You can stir the pot, but you are likely to piss off the organization.  Remember that your person-hood and your work are not even remotely related and that the most successful people at work are often the least successful with others since they have often become successful on the bodies of those they have slain.

These are some ideas -- feel free to follow up with any additional questions.  

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