Top 5 Legal Mistakes Churches Make When Hiring Staff

I’ve been around enough church hiring tables to notice a pattern. It usually starts the same way: a position opens up — maybe your worship leader moves away, your children’s director takes a new job, or you realize the admin team is just drowning.

Everyone feels the pressure. There’s a quick prayer for guidance, a couple of résumés passed around, and then someone says the magic words:

"I know a great person for this role — let’s bring them on."

And sometimes, it works beautifully. The new hire is a perfect fit, the ministry flourishes, and you wonder why you didn’t hire them sooner.

Other times… not so much. The role turns into a revolving door, the job description morphs into a “catch-all” list of random tasks, and before you know it, you’re dealing with conflict, burnout, or even legal issues that could have been avoided entirely.

The truth is, ministry hiring is personal, but it’s also legal. And when churches skip the legal side, even the best-intentioned hires can turn into headaches.

So, let’s talk about the top five legal mistakes churches make when hiring staff — and how you can avoid them without losing the warmth and relational heart of ministry.

1. No Written Employment Agreement

Here’s the thing: I love the relational warmth of ministry. I love that church feels like family. But I’ve also seen how relying on “We’re family, we don’t need all that paperwork” can cause unnecessary damage.

Without a written agreement:

• Expectations are left floating in the air.
• Roles slowly “drift” until no one knows what’s really included in the job.
• Terminations become messy and painful.

I once worked with a church where a staff member started as a part-time communications person, but over two years, their role ballooned to include event planning, facilities scheduling, and volunteer coordination. When they reached burnout and resigned, both sides felt wronged — because there was no agreement that clearly said what the role was or wasn’t.

A good employment agreement doesn’t remove trust — it builds it. It says, “We value this relationship enough to make it clear.” It spells out the role, reporting structure, pay, benefits, and expectations, which means fewer misunderstandings and more peace of mind for everyone.

2. Misclassifying Workers

Let’s be honest — churches aren’t always great at this one. There’s a temptation to put someone on a 1099 because it feels “simpler.” But the IRS doesn’t care what’s easier — they care about the legal definition.

If the person is working your hours, using your tools, and answering to your leadership, chances are, they’re an employee — even if you’re paying them like a contractor.

Misclassifying workers can lead to:

• Owing back taxes.
• Penalties and interest.
• Lawsuits over benefits or overtime pay.

I saw one church get hit with a massive tax bill because they had been paying their youth director as a contractor for three years. They thought they were being flexible. The IRS called it “misclassification.”

Before you hire, determine if the role is truly independent — or if it should be on payroll. If you’re not sure, that’s exactly the kind of thing Church Law Strategy can clarify before it becomes an expensive problem.

3. Skipping Background Checks

I know — you’ve known this person forever. They’ve been in the pews every Sunday for years. Maybe you’ve even had them over for dinner. But when it comes to hiring, familiarity doesn’t replace due diligence.

If the role involves working with children, youth, or vulnerable adults, skipping a background check is not just risky — it can be devastating. It’s not just about catching “bad actors”; it’s about creating a consistent, protective process for everyone.

And here’s where many churches miss a step: background checks aren’t a one-and-done thing. They should be part of a larger child safety policy that includes training, reporting procedures, and clear boundaries for every team member.

One church I know implemented an annual “child safety refresher” for every staff member and volunteer in family ministries. It wasn’t about mistrust — it was about keeping the standard high and the culture safe.

4. No Clear Job Description

This is one of the fastest ways to create frustration on both sides. Without a clear job description:

• Staff can end up doing work they never signed up for.
• Leaders don’t have a clear standard to evaluate performance.
• There’s no roadmap for success.

Job descriptions don’t have to be ten pages long. In fact, the best ones are simple and specific:

• Primary responsibilities (no more than 6–8 main duties).
• Reporting relationships (who they report to, who reports to them).
• Required skills and qualifications.
• Schedule expectations.

And yes — it’s worth reviewing them annually. Roles change over time, and the document should reflect reality, not just the day the person was hired.

5. Ignoring State and Federal Employment Laws

This is where many churches get caught off guard. Every state has its own rules for things like:

• Overtime pay.
• Meal and rest breaks.
• Paid leave.
• Anti-discrimination laws.

And here’s the kicker: churches aren’t automatically exempt from all of them.

I’ve seen churches fined because they assumed “We’re a ministry” meant certain rules didn’t apply. They found out the hard way that wasn’t true.

Before you post a job, make sure you know what laws apply in your state and at the federal level. It’s not just about avoiding fines — it’s about honoring your staff and treating them fairly.

Why This Matters for Your Church

When a hire goes wrong, the damage isn’t just legal — it’s relational and spiritual. Staff transitions done poorly can wound people deeply, hurt morale, and even harm your church’s reputation in the community.

That’s why Church Law Strategy exists — to make sure your hiring process is strong, protective, and legally sound from day one. Because when the foundation is right, your team can focus on what matters most: ministry.

Our Links

• Church Legal Audit and Action Report
• HR & Volunteer Onboarding Process Guide
• Child Safety Policy Development and Certification

Other Resources to Check Out!

• IRS: Tax Guide for Churches and Religious Organizations
• Evangelical Council for Financial Accountability (ECFA)
• Christianity Today: Church Leadership Articles

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and Church Law and Strategy or its representatives. For specific legal advice tailored to your church or organization, please consult a licensed attorney.