October 2016 Newsletter
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CalChamber's HRCalifornia website guides you through the complexities of California and federal employment law. Check HRCalifornia first to avoid mistakes that could cost your company a lot of money in potential fines and lawsuits.

For a 15-day FREE trial, click HERE.

FREE and discounted Christian Ebooks! 

" David C Cook "is a publisher of Christian books of various genres. 

The current eBook on sale for $.99 is  Messy Church  by Ross Parsley.
 
To view all David C Cook has to offer, click HERE.

*Offers from David C Cook not necessarily endorsed by CMA.

Pacific Justice Inst. Pacific Justice Institute

"Through our dedicated attorneys and supporters, we defend the rights of countless individuals, families and churches...without charge."

Pacific Justice Institute
is a non-profit 501(c)(3) legal defense organization specializing in the defense of religious freedom, parental rights, and other civil liberties. Pacific Justice Institute works diligently, without charge, to provide its clients with all the legal support they need.

From the President
This month's newsletter includes a number of articles related to the pending changes in the federal overtime rules for traditionally exempt employees. Of particular interest to private schools in California is recent legislation that temporarily suspended the professional exemption for teachers. Additionally, several lawsuits have now been filed in federal court challenging the New Rule. Each case would appear to have merit, however it remains to be seen whether the Federal Courts will view the cases favorably.

As always, if you have questions about anything you read here or we can otherwise assist your ministry in any way on issues of compliance, please do not hesitate to contact our office.

Yours in His Service,

Steve Boersma
President/CEO
Vow of Poverty did not Exempt
Pastor from Tax
Background

The pastor signed a vow of poverty in which he agreed to give all his property and future income to the church. In return the church agreed to provide for his physical, financial, and personal needs, including his housing, all ministry expenses, and any other needs. The church established an apostolic bank account. The pastor had control over the account.

Under audit, the pastor did not dispute the fact that the church and related entities paid his personal expenses but claimed that his vow of poverty insulated him from being taxed on the amounts paid on his behalf by the church.

IRS Position  HERE .
Update: White Collar Employees Minimum Wage
For several months now we have been telling you about the upcoming change in the minimum salary "white collar" employees will be required to earn on an annual basis to continue to be exempt from overtime rules. (For more information on the new rules you can visit our bookstore where you will find several useful resources www.cmanational.org ). The change is scheduled to take place on December 1, 2016.

Now, however, several efforts are underway to delay or even do away with the New Rule. In late September the U.S. House of Representatives voted 246-177 to delay implementation of the New Rule by six months to June 1, 2017. (read more)
Teacher Exemption from
Overtime Suspended
On September 12, 2016 California's Governor, Jerry Brown, signed into law Assembly Bill 2230. The law temporarily suspends the earnings standard associated with qualifying certain "white collar" positions from overtime for teachers who work at private elementary or secondary academic institutions in the state. The suspension will remain in place until July 1, 2017, at which time a revised earnings standard for exemption from the overtime provisions is expected to be in place.
 
This effectively means that any individuals working as teachers in private elementary or secondary institutions in the state of California are now eligible for overtime for any hours worked over 8 in a day, or 40 in a workweek. With the suspension of the earnings standard it means that no amount of regular salary will be sufficient to exempt qualifying teachers. 
 
To learn more about the bill click  HERE.
Employment  Law
New Form I-9 Coming November

In November 2015, the U.S. Citizenship and Immigration Services (USCIS) announced proposed changes to the Form I-9, Employment Eligibility Verification. The Office of Management and Budget recently approved the final version of the new Form I-9, and the USCIS must publish a revised version by November 22, 2016.
In the meantime, employers must continue using the current version of the Form I-9, which bears an expiration date of March 31, 2016. [Note: The USCIS specifically stated that employers can use this version until January 21, 2017. After January 21, 2017, all previous versions of the Form I-9 will be invalid.]