Nonprofit Legal Alerts

The materials in our Resources section are for informational purposes only, without any representation that they are accurate or complete. These publications do not constitute legal advice and do not create an attorney-client relationship between the reader and any other person, nor are they an offer to create such a relationship. These publications are current as of the date written, but laws change over time and vary from state to state. As a result, the information presented here may not be timely and/or appropriate for any state not specifically addressed in a publication. Consult an attorney if you have questions regarding the content of any publication.

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Do You Have Independent Contractors Who Are Actually Employees?

Posted on January 19, 2021

Just because you want to treat a worker as a contractor and you have an independent contractor agreement, it doesn’t mean that the US Department of Labor (the “DOL”) will agree with you. A worker you consider to be an independent contractor may actually be an employee, subject to minimum wage and overtime requirements under the Fair Labor Standards Act. The DOL recently issued guidance, due to go into effect on March 8, clarifying the DOL’s independent contractor test under the FLSA. Read more in this article

Federal Postings Are Still Required for Remote Workplaces

Posted on January 19, 2021

Under federal law, employers are required to display notices and posters in the workplace advising employees of their rights.  What is a “workplace” when some or all of your employees are remote?  Should you send notices out via e-mail, or post them on a shared document drive, or in the breakroom no one has used since March 2020?  Read this article to learn more about the US Department of Labor’s (“DOL”) recent guidance on legally-compliant electronic postings.

Form 1099-NEC Awareness Week

Posted on January 12, 2021

If your nonprofit hired contract workers prior to 2020, you reported their total earnings to the Internal Revenue Service (“IRS”) in a Form 1099-MISC.  The IRS has introduced the Form 1099-NEC for the 2020 tax year, for reporting independent contractor income.  If your nonprofit hired a contract worker (including independent contractors, gig workers, or self-employed individuals) and paid that individual more than $600 in 2020, you must report their earnings in a Form 1099-NEC by February 1, 2021.  Read this article for more information about when to use a the Form 1099-NEC versus the Form-1099 MISC.

The IRS is even hosting awareness meetings January 12th and 14th for tax-exempt organizations to get familiar with the Form 1099-NEC.  Click here for information on dates, times and direct links to the IRS’ Zoom meetings this week.

LEGAL ALERT: Federal Contractors Beware – New Executive Order Limits Diversity Training by Federal Contractors, Subcontractors, and Grant Recipients

Posted on October 13, 2020

New Executive Order 13950 was issued on October 7, 2020, that, among other things, instructs government contracting agencies to add provisions to government contracts prohibiting the use of any workplace training “that inculcates in its employees any form of race or sex stereotyping or any form of race or sex scapegoating.” In addition to prohibiting employment training that implicates race or sex stereotyping, “scapegoating” or “divisive concepts” like unconscious bias, the new order implements new notice and posting requirements; instructs the Office of Federal Contract Compliance Programs (“OFCCP”) to create a complaint hotline for violations of the order; and instructs the OFCCP to initiate a process for collecting employee training materials and related information used by contractors relating to diversity and inclusion efforts. Please see this article from Venable LLC explaining the Executive Order, and this article from Venable LLC which discusses the recent guidance issued by the OFCCP on implementing this Executive Order.

Despite the fact that portions of this Executive Order may violate First Amendment protections and be inconsistent with other existing laws and regulations, failure to comply with it could result in severe consequences for nonprofits that contract with or receive grants from the Federal government. Nonprofit organizations that are federal contractors, subcontractors or grant recipients should revisit any training they are providing in light of the requirements imposed by the Executive Order.

UPDATE ON January 19, 2020

Office of Federal Contracts Compliance Halts Enforcement of Executive Order on Combating Race and Sex Stereotyping

In response to the December 22, 2020 preliminary injunction of the U.S. District Court for the Northern District of California enjoining enforcement of Executive Order (“EO”) 13950, Combating Race and Sex Stereotyping, previously discussed here, the Office of Federal Contract Compliance Programs (“OFCCP”) issued a Notice Regarding Executive Order 13950, suspending both the enforcement of, and collection of information under, EO 13950. In that Notice, the OFCCP indicated that it will shut down the hotline, cease investigating allegations of noncompliance, refrain from posting any additional Requests for Information, and suspend enforcement of the contract clauses listed in Section 4(a) of the EO.

Sales Tax Exemptions Extended Indefinitely for Certain Nonprofits

Posted on August 13, 2020

Georgia has indefinitely extended sales and use tax exemptions for nonprofit volunteer health clinics, nonprofit health centers and qualified food banks. Read this article to learn more about applying for sales and use tax exemption letters of authorization.

Paycheck Protection Program Loan Applications Open Today – How-to-Calculate-Payroll-Costs

Posted on April 27, 2020

The Paycheck Protection Program (PPP) loan applications opened back up today (April 27) at 10:30am. In addition, last Friday afternoon (April 24), Treasury and the SBA provided frequently asked questions (FAQs) on how to calculate payroll costs when completing the PPP application form. This alert includes the text of Question 6 which addresses how eligible nonprofit organizations should calculate the maximum loan amount.

Transitioning Employees Back to Work

Posted on April 23, 2020

Many organizations have halted operations, altered their workforces, hours or pay structures, and changed the way they are working during the COVID-19 pandemic. Many employees who can do so have been working from home. This article will summarize some of the things nonprofit employers should start to consider as we get closer to the loosening of the shelter-in-place requirements and employees start to return to work.

For more information related to employees transitioning back to their regular worksites, please watch this webcast by PBPA volunteers at Employment Law Solutions. They discuss such topics as worksite safety, educating and managing employees on new safety protocols and potential legal exposure for employers.

Please be aware that these resources are not intended to induce any organization to re-open facilities before it is safe to do so, but is intended to help you to start thinking about those items that need to be considered before and when you do re-open.

Additional Paycheck Protection Program and Economic Injury Disaster Funds – AVAILABLE VERY SOON!

Posted on April 23, 2020

This new Paycheck Protection Program and Health Care Enhancement Act is expected to provide an additional $310 billion for the Paycheck Protection Program (PPP) and $60 billion for the Economic Injury Disaster Loan (EIDL) program. This money will likely be available immediately after the Act is signed into law. Find out more detail in this article.

Loans Available under the SBA’s Economic Injury Disaster Loan Program

Posted on March 27, 2020

Loans Available under the SBA’s Economic Injury Disaster Loan ProgramLoans Available under the SBA’s Economic Injury Disaster Loan ProgramThe Small Business Administration currently offers Economic Injury Disaster Loans (EIDL). These loans may be helpful to small nonprofits during the COVID-19 outbreak. They may be applied for in addition to the Paycheck Protection Loans available under the CARES Act.

Families First Coronavirus Response Act: New Family Leave and Sick Leave Obligations for Employers Signed into Law

Posted on March 19, 2020

The Families First Coronavirus Response Act (the “Act”) was signed into law on March 18, 2020 and goes into effect on April 2, 2020. This law is a financial aid package intended to address the Coronavirus outbreak. It includes several employment-related provisions that affect will employers with fewer than 500 employees, including nonprofits. Employers are required to provide family leave for public health emergencies and paid sick leave. Employers have 15 days to determine how they will comply with the Act and start implementing it. They will also need to provide notice to employees of these new requirements through postings and policies. While the Act provides the Department of Labor with the ability to issue regulations to exempt certain employers with fewer than 50 employees from the family leave requirements, please be aware that no such regulations have, as yet, been issued. See this new Legal Alert for more information.