Overtime Rule Effective December 1, 2016

On May 18, 2016 the Administration announced the release of the Final Rule from the Department of Labor regarding overtime regulations for workers and organizations.  According to the Department of Labor website, Key Provisions of the Final Rule are:

1. Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);
2. Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
3. Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.
4. Additionally, the Final Rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10 percent of the new standard salary level.
5. The effective date of the final rule is December 1, 2016. The initial increases to the standard salary level (from $455 to $913 per week) and HCE total annual compensation requirement (from $100,000 to $134,004 per year) will be effective on that date. Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.

To read the fact sheet for non-profits please visit https://www.dol.gov/sites/default/files/overtime-nonprofit.pdf
To read the guidance for non-profits please visit https://www.dol.gov/whd/overtime/final2016/nonprofit-guidance.pdf

Free Department of Labor Webinars about the Overtime Final Rule

June 2, 2016, 1:00pm - 2:30pm, EST https://goo.gl/o6AnXn

June 9, 2016, 1:00pm - 2:30pm, EST https://goo.gl/6V5WSO

[Source: National Association of Free and Charitable Clinics]

CHARITABLE DEDUCTION - ACTION REQUESTED

The Senate Finance Committee is looking to reform the Nation’s Tax Code.  Chairman Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT) have informed each senator of their intention to pursue tax reform beginning with a “blank slate” and asking them to justify adding back in any deductions, credits, and preferences based on three criteria:  that they (1) help grow the economy, (2) make the tax code fairer, or (3) effectively promote other important policy objectives, as well as to submit any other ideas they may have regarding a tax overhaul.

One deduction that is on the table for consideration to be cut or limited is the Charitable Deduction. Eliminating the deduction may have a dramatic impact on your clinic budget, as some people may decide not to donate or donate less without this deduction.

It is critical that you take a moment and write a letter to your Senate members explaining that losing this deduction would negatively impact the work at your clinic and the work of non-profits around the country.  The NAFC has drafted a letter on this topic for you to place on your letterhead, sign and send to your elected officials.  Please note, in addition to discussing the impact of limiting/eliminating the charitable deduction will have on your clinic, it also includes language that reflects how this limitation will hurt non-profits as a whole.  Staff feels very strongly that it is critical to identify ourselves as strong members of the non-profit sector by joining our voices with others in this arena.

This issue is of CRITICAL IMPORTANCE to the non-profit community as a whole and as a large part of the safety net community, the NAFC is asking that you act RIGHT AWAY.

What Can You Do?

The fastest way to get information to your Senators is to either send an email or fax a letter to them.  The NAFC has drafted a sample email/letter on this for you to place on your letterhead, sign and send to your Member.  Click here to download a copy of the letter.  Click here to find a web form to email, along with fax number and mailing address for your Senator.

**If you would like to email or use the web form and there is not the ability to add the letter on your letterhead, please copy and paste the body of the letter into the comment box with your contact information.

When you have sent your message please update the NAFC offices via email at info@nafcclinics.org. [Source:  NAFC]

Webinars on the Health Care Law

The HHS Partnership Center continues to host a series of webinars for faith and community leaders.  All webinars are open to the public and include a question and answer session.  To participate in one of the webinars, please select the topic below and submit the necessary information.  After registering you will receive an e-mail confirmation containing information about joining the webinar.  Please contact us at ACA101@hhs.gov if you have problems registering or if you have any questions about the health care law.  All webinars are one hour.

Please note that the first 1,000 people who join each webinar at the start time are able to attend.  If there is significant interest in a webinar, we will do our best to schedule another session for the following month.  If possible, please use your computer speakers to listen to the audio portion of the webinar.

The Health Care Law - Health Insurance Marketplace 101
A presentation on the main provisions in the health care law (the Affordable Care Act) and how to access care in your community.  Topics include the Health Insurance Marketplace, how to enroll in health insurance, and how to receive updates on implementation of the law. A brief question and answer session will provide answers on commonly asked questions.

• July 11 at 2:00pm ET https://www4.gotomeeting.com/register/324888711
  
• August 7 at 3:00pm ET  https://www4.gotomeeting.com/register/119796735  [Source:  NAFC]