Here's a copy of the Division II rule regarding employment of HS coaches. While it doesn't specifically address travel ball coaches, it's certainly OK for them if it's OK for a HS coach.
NCAA Division II Bylaw 11.4.3 High School, College-Preparatory School or Two-Year College Coach. An institution may employ a high school, college-preparatory school or two-year college coach, provided the individual:
(a) Performs actual, on-the-field coaching duties;
(b) Is involved in recruiting only to the same extent as other institutional on-the-field coaches; and
(c) Is under contract or other binding agreement for a period of not less than one academic year; however, the member institution is permitted to confine its compensation to such a coach to a shorter period of time, such as a sport season.