Written on September 12, 2010 by admin
Filed Under: Journal
The Health Care Reform Bill, otherwise known as the Patient Protection and Affordable Care Act or PPACA, requires employers nationwide to provide unpaid time for a non-exempt employee who is a nursing mother to express breast milk, and a private location to do so.
The law requires that non-exempt or hourly employees be given reasonable unpaid time to express breast milk. The statute specifically notes that the duration and frequency of these breaks will vary from one employee to the next. Breastfeeding mothers are covered for one year after the infant’s birth.
The law does not apply to any employee who is exempt from the overtime provisions of the FLSA, although employers are encouraged to give such breaks to exempt employees as well as non-exempt employees.
In addition, under the new law the employer must provide a private location free from intrusion, and shielded from the view of the public or other employees, for the use of a breastfeeding employee. A bathroom, even a private bathroom, is not sufficient under the law. An office or other space that can be locked can be used, as long as it is made available when the employee needs it. Many employers meet this requirement by making the HR office or another manager’s office available to the nursing mother whenever she needs it.
Employers are not required to pay the nursing mother for these breaks to express breast milk. However, when the employer provides paid rest breaks to other employees, the nursing mother must be compensated in the same way.
The law does not preempt state breastfeeding laws that may offer the employee greater protection under the law. Currently Twenty-four states plus the District of Columbia and Puerto Rico have state breastfeeding laws. Those states include Arkansas, California, Connecticut, Colorado, Georgia, Hawaii, Illinois, Maine, Indiana, Minnesota, Mississippi, Montana, New York, New Mexico, Oregon, North Dakota, Rhode Island, Oklahoma, Texas, Tennessee, Virginia, Vermont, Washington and Wyoming.
The PPACA amended the Fair Labor Standards Act or FLSA, the federal minimum wage law that applies to employers who engage in interstate commerce, or employers who have more than $500,000 in annual sales.
The breastfeeding provisions of the PPACA apply to every employer with 50 or more workers. In addition, smaller employers are required to abide by the PPACA as long as it does not present an undue hardship to the employer. It would probably be an undue hardship for a small convenience store with only one employee on duty at a time to provide unpaid break time and a private location for a nursing mother to express breast milk. However, if the convenience store chain had more than 50 employees nationwide, the employer would have to make that accommodation, even if it was an undue hardship.
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Written on August 22, 2010 by admin
Filed Under: Labor Law
Federal tax law allows tax exempt status to nonprofit organizations. The status has many advantages but it is important that those setting up nonprofit organizations understand federal tax law if they are to get the most out of this status and avoid running into trouble. Getting to know the ins and outs of the law will pay off in the long run.
It is something to consider at the very outset because only certain kinds of organizations qualify for tax exempt status under the Federal Tax Law of 2005. First of all it is necessary to understand what kind of organizations can be classified as nonprofit.
Non profit organizations include a wide range of organizations such as schools, hospitals, public charities, volunteer agencies, legal aid organizations, political organizations, churches, labor unions and professional bodies, research institutions and some government bodies. Under the federal tax law of 2005 these organizations do not have to pay tax. But those who run them still need to understand how the federal tax law applies to them if they are to protect their tax exempt status.
The Federal Tax Law of 2005 defines a nonprofit organization as “group organized for purposes other than generating profit and in which no part of the organization’s income is distributed to its members,directors, or officers.” They can also be called “non stock organizations.”
A nonprofit organization must be declared a nonprofit organization when it is set up in order to qualify for tax exempt status under the Federal Tax Law of 2005. A nonprofit organization must be established for a religious, charitable, scientific, public safety, literary, or educational, purposes, to prevent cruelty to children or animals, or to develop sport, whether on a national or international level. The statutes of the organization must clearly state that it is for no other purpose than those that are allowed for tax exempt status.
Nonprofit organizations are also exempt from social security tax. For an organization that is run entirely by volunteers this may be a useful factor. Volunteers will benefit from social security contributions made through their regular employment. But organizations that employ salaried staff usually opt to pay social security taxes because their employees would be disadvantaged otherwise. About 80% of nonprofit bodies pay social security tax despite the exemption.This is something to consider when setting up a nonprofit organization.
When a nonprofit organization is set up it must apply to the IRS for 501c3 status. This is the technical term that means it has tax exempt status under the 2005 Federal Tax Law. This special tax status allows the organization to receive tax deductible donations. Donors to the organization can then deduct their donation from their own tax return. Tax exemption is therefore a major benefit for any nonprofit organization since it provides an incentive to donors and maintains the organization’s income stream.
Tax exempt status does not mean that a nonprofit organization does not have to keep financial records. Effectively, a nonprofit organization has to keep the same records as though it were going to submit a tax return. In order to maintain its 501c3 status a nonprofit organization must keep a record of all its revenue from donations, grants, sponsorships and so on. The IRS can demand that a nonprofit organization files information about its income.
Understanding how the federal tax law applies to nonprofit organizations will help you to run a successful organization.