On Tuesday, the U.S. Department of Labor (DOL) announced a new proposed rule for determining whether workers are employees or independent contractors under the Fair Labor Standards Act (FLSA). Under FLSA, nonprofits and other employers are required to pay a minimum wage and offer overtime pay for certain workers who are classified as employees. Independent contractors aren’t entitled to these or other benefits of employees.

The new rule would replace a rule from early 2021 that made it easier for employers to classify workers as independent contractors. The current rule focuses on two criteria – opportunity for profit or loss and control over work – in determining whether workers are employees or independent contractors. The proposed new rule would return to a more traditional six-factor “economic realities” test that would consider:

1. Opportunity for profit or loss depending on managerial skill;
2. Investments by the worker and the employer;
3. Degree of permanence of the work relationship;
4. Nature and degree of control by the employer;
5. Extent to which the work performed is an integral part of the employer’s business; and
6. The worker’s skill and initiative.

The new rule may mean that more nonprofit workers need to be classified as employees rather than independent contractors and receive employee benefits. The proposed rule is open for public comments through November 28.

Separately, DOL is planning to release new proposed regulations on the salary threshold under the FLSA later this month. Currently, FLSA requires employers, including nonprofits, to pay their employees at least $7.25 per hour and to pay employees one-and-one-half times their regular rate of pay when they work more than 40 hours in a workweek. Employees are exempt from the FLSA overtime pay requirement if they:

1. Are paid on a salary basis (meaning they are paid the same amount each week regardless of how many hours they actually work);
2. Are paid at least $684 per week ($35,568 per year); and
3. Exercise job duties that are classified as administrative, executive, or professional.

On Monday, congressional and state legislative candidates from Pitt County gathered at the Pitt County Council on Aging for a nonpartisan nonprofit candidate forum to discuss a variety of policy issues of importance to local nonprofits. Candidates participating included:

• U.S. House of Representatives District 1 candidate Don Davis (D);
• A representative from the campaign of U.S. House District 3 candidate Barbara Gaskins (D);
• NC Senate District 5 candidate Karen Kozel (R);
• NC House of Representatives District 8 candidates Gloristine Brown (D) and Drock Vincent (R); and
• NC House District 9 candidates Brian Farkas (D) and Dr. Timothy Reeder (R). 

Every candidate from each of these five races were invited to participate in the forum.

The candidates shared their views on a wide range of policy issues, including access to affordable health care, food insecurity, affordable housing, and policy solutions to help seniors and the growing Latino population. During and after the forum, each of the candidates noted that, through their participation in the forum, they learned more about these important policy issues and gained a deeper appreciation for the work of nonprofits that serve Pitt County.

The Center supported several local nonprofits- the Association of Mexicans in North Carolina, Inc. (AMEXCAN), Boys & Girls Club of the Coastal Plain, Daughters of Worth, the Food Bank of Central & Eastern North Carolina, NC Stop Human Trafficking, Pitt County AIDS Service Organization, and Pitt County Council on Aging – in organizing the forum. The Center looks forward to working with nonprofits on similar candidate forums in Pitt County and other parts of the state in the future. We’ll keep you posted when there are opportunities for your nonprofit to help organize a similar nonpartisan candidate forum in your community.

Nonprofit employees have just over two weeks left to take advantage of the temporary Public Service Loan Forgiveness (PSLF) waiver. This temporary waiver, which ends on October 31, makes it possible for many nonprofit workers to receive credit for past periods of repayment that would otherwise not qualify for the PSLF program, thereby reducing or potentially eliminating student loan debt. The PSLF program forgives the balance of most federal student loans after ten years working for charitable nonprofits and governments.

The National Council of Nonprofits is offering a free webinar next Tuesday, October 18 at 3 p.m. to answer your questions about PSLF and the waiver which expires at the end of this month. The webinar will feature several experts on PSLF who will address common questions about PSLF and explain how you could be much closer to loan forgiveness than you think! If you work for a nonprofit and currently have student loans, we encourage you to join the webinar to learn more about the possibility of loan forgiveness. Register Today!

In the meantime, here are three things your nonprofit can (and should) do today to help ensure that your eligible employees take advantage of the temporary PSLF waiver:

1. Remind your employees about the temporary PSLF waiver and the October 31 deadline in any upcoming staff meetings or communications with your employees. You can share the U.S. Department of Education’s free resources about the waiver (note that the website has had some delays recently due to the high level of interest in the waiver).
2. Make it easier for your employees to apply for the waiver by making sure they know your nonprofit’s employer identification number (EIN) and the contact information for the person on your staff to direct PSLF forms and related questions.
3. Encourage your employees to check out The Institute of Student Loan Advisors (TISLA), a nonprofit with free information about PSLF, how you might qualify, and all things student loans.

Have you been wondering what types of election-related activities your nonprofit can and can’t do between now and the November 8 election? You’re not alone. The Center has been fielding many questions about what’s legal and what’s advisable, and posted updated answers to some of the most common questions we’re hearing. Let us know of other questions you have about your nonprofit’s engagement in the 2022 election.

Early voting for the 2022 general election begins next Thursday, October 20. Now is the perfect time to help everyone in your community get ready to vote and encourage voting during the early voting period - the one time when everyone who is eligible to vote in North Carolina can register and vote at the same time, and can vote at ANY early voting location in their home county! Here are three questions your staff, volunteers, and the people your nonprofit serves may be asking (along with resources to help you answer the questions):

• Looking for your county’s one-stop early voting sites? Check the NC Board of Elections One-Stop Early Voting search tool to find locations and times of all the early voting sites in your county. Early Voting remains open through Saturday, November 5. If you plan to register and vote at the same time, be sure to bring accepted proof of residency, as explained here. 
• Want to find a sample ballot or check on your voter registration status? You can do both through the NC Board of Elections’ online Voter Search tool. Note that if you aren’t currently registered to vote in your county - or if your registration is at an old address - you can register or update your voter registration at a One-Stop Early Voting site, but you won’t be able to register and vote on Election Day. Tip: All registered voters can find a sample ballot by searching for themselves, clicking on their name, and scrolling down to a section titled “Your Sample Ballot.” From there, you’ll need to click on the entry near the middle of your screen (it might look something like B0002 or B0004). 
• Interested in learning more about the candidates on your ballot? We encourage everyone in the nonprofit sector to read the responses to the Center’s nationally acclaimed candidate questionnaire. Simply click on your county to search for responses by local candidates for the U.S. House of Representatives, NC Senate, and NC House. For more information, voters may also wish to consult the VOTE411.org voters’ guide. 

Once you’re ready to vote, make an early voting plan - and encourage others to do so, too!  

One of the easiest ways nonprofits can help promote elections is by giving your staff paid time off to vote during Early Voting or on Election Day. To help ensure that nonprofits show leadership when it comes to empowering the millions who work daily to create a more equitable society, Nonprofit VOTE, the National Council of Nonprofits, and several other national organizations launched the Nonprofit Staff Vote campaign.

The Center has proudly signed on to the Nonprofit Staff Vote campaign, and we encourage your nonprofit to join also. To model best practices, the Center is sharing its policy (below) allowing staff to take time off to vote or to volunteer as nonpartisan poll workers. Feel free to borrow and adapt this language to fit into your organization’s personnel policies. And let us know if your nonprofit is also giving staff time off to vote in this year’s election.

“Voting and Election Day. The Center encourages all employees who are eligible to vote to participate fully in the electoral process. Any Center employee may take paid time off work on Election Day or during the Early Voting period to vote in any primary, general, or run-off election. Employees should notify their supervisors of the time they plan to take off for voting.

“Center employees also may take up to one day per year of paid time off to volunteer in a nonpartisan role as a poll worker on Election Day or during the Early Voting period. Employees must get prior written approval of their supervisors (which shall not unreasonably be denied) before taking this paid time off. Employees volunteering for political parties or campaigns on Election Day or during the Early Voting period may not be paid for their time engaging in partisan political activities, but they may take annual leave for any time spent volunteering for candidates or political parties.

“Paid time off for voting and nonpartisan election volunteer work is in addition to annual leave, sick leave, and personal leave that employees have accrued. Employees are not required to use annual leave, sick leave, or personal leave when they take paid time off to vote or to volunteer as a nonpartisan poll worker pursuant to this policy.”

Second quarter lobbying expense reports are due to the NC Secretary of State by next Friday, October 21. Nonprofits that are registered as lobbyist principals and nonprofit staff and contractors registered as lobbyists must submit their expense reports each quarter. For more information on lobbying registration and reporting requirements, check out the Center's summary of NC lobbying laws for nonprofits.

The Center provides Nonprofit Policy Update each week as a benefit to its nonprofit members. However, to help all North Carolina nonprofits respond to the COVID-19 pandemic, we're temporarily providing this newsletter to non-member nonprofits. Don’t miss out – become a member to ensure you continue receiving these updates along with many other valuable benefits.