Democrats Get Control Of Senate
Last week, Georgia Democrats Jon Ossoff and Raphael Warnock won their runoff elections in a record-setting turnout. As a result, Democrats effectively now control the U.S. Senate. The Upper Chamber is evenly divided at 50 Republicans and 50 Democrats with Vice President-elect Kamala Harris breaking the tie and handing the gavel to Democrats.
DOL Clarifies Independent Contractor Status
The Department of Labor (DOL) has released its final rule clarifying independent contractor status under the Fair Labor Standards Act (FLSA). The final rule includes the following clarifications:
- Reaffirms an “economic reality” test to determine whether an individual is in business for him or herself (independent contractor) or is economically dependent on a potential employer for work (FLSA employee).
- Identifies and explains two “core factors” that are most probative to the question of whether a worker is economically dependent on someone else’s business or is in business for him or herself:
1. The nature and degree of control over the work.
2. The worker’s opportunity for profit or loss based on initiative and/or investment. - Identifies three other factors that may serve as additional guideposts in the analysis, particularly when the two core factors do not point to the same classification. The factors are:
1. The amount of skill required for the work.
2. The degree of permanence of the working relationship between the worker and the potential employer.
3. Whether the work is part of an integrated unit of production. - The actual practice of the worker and the potential employer is more relevant than what may be contractually or theoretically possible.
- Provides six fact-specific examples applying the factors.
The rule will take effect 60 days after publication on the Federal Register, on March 8, 2021.
All employers must abide by the FLSA; however, many states’ rules, like California’s ABC Test, set forth more stringent requirements for worker classifications that should be followed.
It is unclear whether this rule will go into effect under the Biden administration and if it will be impacted by an independent contractor bill that has already passed the House. NCA will keep you apprised of future developments.
NCA Denounces Attack on Congress
In response to last Wednesday’s attack on the U.S. Capitol, a place where I’ve had the privilege of working in and walking the halls of, NCA released the following statement:
The National Club Association strongly condemns the riotous acts and violence that occurred yesterday on Capitol Hill. As the organization that actively lobbies Congress on behalf of the club industry, we are shocked and saddened by the unlawful revolt against an institution with which we personally interact and conduct business.
NCA’s Vice President of Government Relations Joe Trauger states, “As a former senior staffer in the House and Senate, the breaching and vandalizing of the U.S. Capitol yesterday is deeply personal and upsetting. Every day I had the privilege of walking into the Capitol and into the chamber to assist our elected officials in conducting the business of our nation. The hallowed halls of our Capitol should evoke the best of who we are as a people. It is a monument to our country and the world. What occurred yesterday was abhorrent and a travesty of our democratic principles. Those responsible should face the consequences of both their actions and rhetoric.”
NCA appreciates the law enforcement officers who defended our elected representatives and staff and applaud the members of Congress for returning to the Capitol to complete their duty to certify the Electoral College votes from November’s election.
We will continue to work with members of Congress on both sides of the aisle and faithfully participate in the democratic process to advocate on your behalf.
Webcast: Real Estate Tax Assessments for Clubs – What We’ve Learned of Late
As you begin to prepare your club’s taxes, please join us for a critical webinar. On Thursday, January 14 at 2 p.m. ET, join Larry A. Hirsh, president of Golf Property Analysts, for an in-depth review of the fundamentals of private club real estate tax assessments and a discussion of COVID-19’s effect on club real estate values and tax assessments. Register here.
Registration is free for NCA members and $99 for nonmembers.