May 2016 Meeting-Are You Prepared to Comply with New Proposed FLSA Overtime Regulations?

In 2015, the Department of Labor announced a proposed change to overtime regulations that will limit the number of white collar workers who will qualify for exemption from the overtime requirement.  Although the implementation of the regulations has been postponed until 2016 or 2017, businesses should begin to consider how the regulations will impact their pay practices.  We will discuss basic concepts of overtime and exemptions, with a focus on the anticipated changes.

 

Presenter: ANDREA E. ZOIA is an associate with the firm Morgan, Brown & Joy LLP.  Ms. Zoia represents employers in a variety of labor and employment matters.  Her litigation experience includes defending employers in a wide range of workplace claims including employment discrimination, retaliation, wrongful discharge, breach of contract, and wage and hour class actions.  Ms. Zoia is a graduate of Boston College and Northeastern University School of Law.  She is a member of the Labor and Employment Section of the Boston Bar Association.

Below, please find the link to Morgan Brown and Joy’s website with the seminar materials.

http://morganbrown.com/news/news.php?id=435
Link to the Department of Labor’s guidance on the new regulations.  Note that this has its limitations and only addresses application of federal law (and not the Massachusetts overtime requirements):

https://www.dol.gov/whd/overtime/final2016/

 

Article about the topic:

The Federal Fair Labor Standards Act (FLSA) requires that Non-Exempt employees be paid at an overtime rate for worked performed in excess of 40 hours per week.  States also have their own standards, but they must comply at a minimum with the Federal Standards.  Massachusetts standards use the FLSA provisions. The FSLA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, and professional employees (white collar employees). To qualify for the exemption, a white collar employee generally must:
1. Be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (the salary basis test);
2. Be paid a minimum specified salary (the salary level test); and
3. Primarily perform executive, administrative, or professional duties, as defined in the federal regulations (the duties test).
Highly-compensated employees (HCEs) who are paid total annual compensation of a minimum specified amount and meet certain other conditions are also deemed exempt from the FLSA minimum wage and overtime pay requirements.

Job titles never determine exempt status. Receiving a particular salary, alone, does not indicate that an employee is exempt. Rather, in order for a white collar exemption to apply, an employee’s specific job duties and earnings must meet all of the applicable requirements provided in the regulations. Keep in mind that when both the FLSA and a state law apply, the employee is entitled to the most favorable provisions of each law.

In 2015, the Department of Labor announced a proposed change to overtime regulations that will limit the number of white collar workers who will qualify for exemption from the overtime requirement.  Although the implementation of the regulations has been postponed until 2016 or 2017, businesses should begin to consider how the regulations will impact their pay practices.  Andrea discussed basic concepts of overtime and exemptions, with a focus on the anticipated changes.

Andrea recommended that employers start off by assuming that all employees are non-exempt and if you have a policy that states that employees are not to work over 40 hours per week, then make it clear, and stick to it.  If nonexempt employees do work over 40, even though you have a policy, you have to pay them OT.   Under the new regulations which take effect on December 1, 2016, there are still “White Collar” exemptions from the OT provisions of the FLSA.   The three categories of “white collar” exemptions are: executive employees, administrative employees, and professional employees.  Executive employees must be paid on a salary basis and their primary duties must be managing the company or a segment of it, directing the work of at least 2 other full time employees and must have authority over those employees.    Administrative employees also must be paid on a salary or fee basis and their primary duty must be the performance of office or non-manual work related to management and must be able to exercise discretion and independent judgment in regard to matters of significance.  Professional employees must be paid on a salary or fee basis and must perform work that requires an advanced knowledge or degree in science or leaning or requires specialized skills in a recognized field of artistic or creative work.   The “duties test’ for determining if a certain employee is exempt or non-exempt will not change under the new regulations.  The change is, under the old rules, to be exempt, you had to meet the duties test, be paid a guaranteed amount (salary or fee) and make at least $455 per week or more to be EXEMPT.  Under the new regulations, you have to meets the duties test, make a guaranteed salary or fee, If you do not meet this salary level, then you are non-exempt and are subject to the Overtime provisions of the FLSA.  Adjustment to the salary limited will occur again on January 1, 2020, and then automatically every 3 years.

Andrea mentioned that determination of exemption under the “duties test” is where most of the litigation takes place.   She also highly recommended that we have all employees fill out timesheet, so there is documentation of hours worked in case litigation does occur.   Penalties for violating the FMLA are severe and the statute of limitations for violations is 3 years.

April 30 – Going Paperless: What You Need to Know

Presentor: Anne Healy, Director of Finance & Administration, at Match Education
Anne has many years of experience as the CFO at various organizations. She shared her experience with paperless solutions that help tame and organize the back office.  She also provided information about several applications used for this purpose, including DocuSign, salesforce, bill.com, and tallie.

Anne Healy, Director of Finance & Administration, at Match Education, shared her experience with paperless solutions that help tame and organize the back office.  Anne has many years of experience as the CFO at various organizations, including Rosie’s Place.  She also provided information about several applications used for this purpose, including DocuSign, Salesforce, Bill.com, and Tallie.
Anne stated that many organizations are trying to get out using paper for the AP function – heading toward a paperless finance operation.  She first spoke about bill.com, which can be used to pay to process invoices and receivables electronically.  It is easy to use and synchs with Quickbooks.  The bill.com files can be uploaded into some accounting systems in CSV format. Bill.com allows you to store AP files and vendor files in their system and it can be used to issue w-9s to vendors.  You can set up a schedule of monthly bills for payment.  You can see all bills outstanding, who has approved the invoice for payment, where it is being charged, and when payments are made.  You can easily separate the duties of paying bills and the ability to input bills into the system. You can have your vendors send their invoices directly to your bill.com account and a manager can approve them for payment. You can just give the bill.com file to your auditors when they review your AP operations.
Tallie is a program that can be used to reimburse employees and to pay your AMEX accounts.  You can upload picture of receipts and it syns with Qucikbooks. Approvers can be set up centrally and documentation is easy to save.
You can use DocuSign to sign your documents – digital signature are now well-accepted in business.   You can cc. others that need to know and filing is easy.
Anne stated that she uses Salesforce to store her organizations personnel files.  It can also be used for program tracking.  It is easily customizable and access and settings can be set up.  For all of the electronic payment, storage, and signing programs, security is very important.  You have to be very careful about deciding who get access and implementing and enforcing the correct and secure settings.

Presentation can be found here: NPFMhandoutpaperless

March 2016: Retirement Plan options for a Non Profit: What you should consider and the questions that you should ask!

Ann Corey from Angell Pension Group presented about:

– 401(k) versus 403(b) – what are the differences?

– ERISA versus NON ERISA 403(b) Plan…what does that mean?

– Changes to the 403(b) landscape – now a world of compliance and fiduciary responsibilities, and answer your questions about handling your organization’s retirement plans.

Materials from the Presentation:

403(b) Presentation 03302016 403bv401k_2016 Sample Fiduciary Calendar 2016

403b versus 401k

Sample Fiduciary Calendar 2016

February 2016 Meeting-FSA/HRA/HSA; Strategic Use of Medical Tax Favored Products

Today, most employers have adopted a consumerism approach to their employer sponsored health insurance by positioning the plan alongside a tax-advantaged medical savings account. The challenge employers face however, is determining which type medical savings account is best suited for their employee population and how to engage and educate employees on maximizing the benefits of these products.

We will evaluate each product’s advantages and discuss strategies to enhance employee engagement and reduce expenses for both employees and employers alike.

Presenter: Marijane Norris Geary, President, Yozell Associates, Boston MA.

Yozell Associates, a full service employee health and welfare benefits firm, has been providing strategic advice and services to its respective clients for over sixty years. Marijane works with clients to implement strategies that address healthcare cost drivers, total workforce health, absence management, utilization  of specialty pharmaceuticals and changes in the provider delivery system.

Click here for Presentation

January 2016 Meeting-Enhancing Strategic Decision Making through Cost Allocations and Program Profitability

Summary: It is vital that organizations understand how to measure the profitability of its programs to enhance strategic decision making.  In this session participants will be able to explore the different types of cost allocation methodologies that nonprofit organizations are utilizing and how that information can be used as a tool to evaluate program profitability and value.

The learning objectives of this session are as follows:

  • Identify different methods of allocating costs to programs
  • Measure impact and profitability to identify the value of a program to an organization
  • Discuss ideas on how to best incorporate program analysis into strategic decision making

Presenter:  Tim Warren is a principal at CliftonLarsonAllen LLP and currently leads CLA’s Massachusetts auditing and tax nonprofit practice.  Tim has experience working with many different types of nonprofit organizations including community based, human service, foundations, associations and higher education in a variety of audit, tax and consulting roles.

PDF of the presentation: Cost Allocations and Program profitability.pdf