Thank you for your interest and support. The Indiana Association of United Ways usually provides its Policy Update on "odd Fridays" (1st, 3rd and 5th Fridays). Contact us if you have any questions or comments about content (past, present or desired for the future).
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2 Minute Update featuring Alicia Hazelwood 
Alicia Hazelwood, Executive Director for United Way of Grant County and volunteer on the IaUW Public Policy Committee, joins us for a 2 Minute Update.
Alicia speaks to the importance of nonprofits engaging in advocacy. It is important that elected officials know how government policies impact the nonprofit sector.
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 New Overtime Rule: What does it mean?
The US Department of Labor finally issued its final rule on overtime and employee definitions. The intent of the rule is to protect employees who have been provided management job titles and responsibilities without appropriate compensation. The Department received over 270,000 public comments, with many suggestions for improvement. The final rule has changed from the original rule, so please review carefully.
Here is a quick summary of the final rule, as it:
- raises the salary threshold from $455/ week (or $23,660 for a full-year worker) to $913 (or $47,476 for a full-year worker) for the executive, administrative and professional exemption. Note this is lower than the originally proposed threshold.
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allows bonuses, incentives and commissions to be included in threshold above, in response to comments from the business sector.
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maintains the duty tests for white collar workers and their employers, including nonprofit organizations.
- goes into effect Dec. 1, 2016.
- increases the threshold every three years starting in 2019.
Note that the new overtime rules do not affect employees who are already paid hourly with overtime for hours worked over 40 hours, who work part-time, who fail the "duties test" as they are already required to be paid overtime, who are highly compensated (over $134K) or who work in special circumstances (see docs).
Here is general information about the rule (see separate article for nonprofits below).
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New Overtime Rule: Considerations for Nonprofits  If a consultant has shared with you that nonprofits are exempt, please understand that it is more complicated. Neither the Fair Labor Standards Act (FLSA) nor the Dept. of Labor's rule exempts nonprofits. While some nonprofits may not be covered under FLSA, most employees of nonprofits are entitled to FSLA protections.
There are three components of the rule: a) salary basis test, b) salary level test (more than $47,476), and c) standard duties test. In a nutshell, if your organization pays your executive director, VPs, directors or managers less than $47,500, then you will likely need to pay them overtime for hours worked over 40 hours a week. Some professionals earning over $47,500 may still qualify for overtime, as the white collar exemptions are complicated.
What does it mean for nonprofit human service providers? You may want to update job descriptions or classifications, raise wages, adjust budgets, juggle workloads or spread work hours. Note that the rule automatically applies to hospitals, schools and preschools, government agencies, and businesses providing medical or nursing care to residents.
Tips for Nonprofits:
- Review your job descriptions and job classifications, and update accordingly. Understand the definition of a "white collar" exempt employee and types of duties that qualify (must supervise 2 people, exercise discretion and judgment or require advanced knowledge).
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Track hours and pay employees appropriately. You may offer employees a "salary" but will still need to track hours and pay overtime as required for hours worked over 40 hours in a week if paid below the salary threshold or if paid over the threshold and they don't meet the duties test.
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Adjust your budgets and grant proposals accordingly. For those on a July 1 - June 30 budget, be sure to add funds for wage adjustments, overtime pay or additional part-time staff, effective Dec. 1, 2016.
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Use volunteers, but do not ask employees to "volunteer" to do same work. Employees may NOT volunteer for the same type of service they are employed to provide.
Key helpful documents for nonprofits:
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 Complete survey on overtime rules
Many nonprofits hold contracts and grants with government. The new overtime rule may impact organizations with contracts and grants. The National Council on Nonprofits is aggregating potential impacts through a survey.
If your organization receives government funds,
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 School lunches and breakfasts in high poverty areas
 A bill debated in a Congressional hearing this week places a spotlight on Indiana, as Rep. Todd Rokita is leading the effort to change the the School Lunch Program. The House Education and Workforce Committee advanced H.R. 5003, a bill that would soften nutrition standards and increase the threshold from 40% to 60% for a school to qualify for the Community Eligibility Program. In Indiana, about 120 schools would no longer be able to participate, reducing access to free lunches for 58,000 children. Arguments for the bill are that children who might be above the income threshold should not receive a free meal and that nutrition standards calling for healthier food enacted in 2010 are too rigid.
The House Education and Workforce committee created a firestorm among news columnists and social media posters. In the midst of the debate, it is important to tease out how the program actually works.
The Free and Reduced Lunch program is a program of the U.S. Department of Agriculture (USDA) and is administered by the IN Department of Education. Here are a few of the basics about the program:
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Income eligibility is 130% of the Federal Poverty Level (FPL) for a family to qualify for free lunches and 185% of FPL for reduced priced lunches. See the income chart and detail.
- Eligibility may be considered by participation in other federal programs which have the same or lower income eligibility. For example, when a family is already on SNAP (income eligibility of 130% of FPL), the child is automatically considered eligible for Free lunch. Similarly, TANF and Head Start eligibility are lower then 100% FPL. Foster children are automatically considered eligible.
- When a school is in a higher-poverty area, where more than 40% of the children already qualify for SNAP, TANF, Head Start or are foster children, then the school may qualify for the Community Eligibility Provision. The idea is that this reduces the paperwork burden on the school, as the families have already been deemed eligible for other poverty-based programs and the school should not have to duplicate the income verification on children.
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Attend the Indiana Summit for Economic Development via Early Learning Coalitions on June 7 
The Indiana Summit for Economic Development via Early Learning Coalitions: The Early Advantage for our Communities and Economy - Win Early will take place in Muncie on June 7. This free event allows community leaders and stakeholders to come together to understand the business case for investment in early childhood and ways to develop and sustain an early learning coalition in your community. Learn more about the summit, share with your networks and register to attend.
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Legislative Study Committees on the Calendar 
During the legislative session many interim study committee topics are recommended by the General Assembly. These committees provide legislators with more information on certain topics such as redistricting, immigration and more. The meetings allow experts in the field and state agencies to share information about the current state of certain issues in Indiana. Upcoming committee meetings include:
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Staying out of trouble with your Charity Gaming events
 Many nonprofits operate raffles, gaming nights or other types of events that involve a game of chance. A 2015 law allows alcohol to be included as a prize or as part of an auction. See summary of new changes effective LAST July.
charity gaming. With planning for fall fundraisers, now is the time to review the rules and apply for the correct license. See types of licenses or FAQ. Note that an organization may be exempt ONLY if the value of all the prizes does not exceed $1,000 for a single event and not more than $3,000 in a calendar year. If exempt, the nonprofit still must submit an Exempt Event Notification form, meet other charitable gaming requirements and maintain financial records.
Here are a few tips if your organization wants to run an event (and does not qualify as exempt):
- The first step is to submit the Qualification Application as a bona fide organization eligible to run a charity gaming event.
- Apply for the correct type of license and submit proper application or renewal fees.
- Be sure to apply approximately 120 business days in advance. (Note that the exempt notification form requires about 21 business days).
- Make sure your operators and workers meet the requirements and follow law and rules.
- Maintain financial records according to rules.
- Submit reports, as required.
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Join the Red Nose Day fun May 26 
Red Nose Day is all about having fun, raising money and making an impact through charitable donations. Money raised through Red Nose Day events helps children living in poverty in the U.S. and internationally. 2016 charity partners include organizations like Boys and Girls Clubs of America and Feeding America. Participate in the fun by wearing your red nose, red flair and rally your co-workers to have fun and raise money. Be sure to share your #RedNoseDay fun on social media. Learn more about Red Nose Day and download the "fun-raiser" toolkit.
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 Weigh in on issues important to you!
Submitting comments during rulemaking periods is an important way to shape policy. State and federal agencies appreciate specific comments about possible impacts and ways to improve proposed rules. Below are a few open comment periods:
- State Board of Dentistry -will hold a hearing on 6/10/16 at 9:15 to discuss proposed rule about requirements for prescribing opioids for pain management. See LSA #15-378.
- FSSA, Office of Medicaid -will modify Medicaid reimbursement rule for covered inpatient hospital services. See LSA # 15-418. Hearing on 6/13/16 at 9am.
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FSSA, Division of Mental Health and Addictions - related to minimum standards for opioid addiction treatment programs. See LSA #16-1, or proposed rule. Deadline: 6/30/16.
- State School Bus Committee, DOE, will hold a hearing on rules related to child alert systems, contents of first aid kits and optional rear stop arms. See LSA #15-426. Hearing on 9/6/16 at 9am.
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 IaUW Public PolicyIaUW is a nonpartisan organization that works to advance policy principles and compromise solutions for the common good. We focus on policies that are aligned with the impact work in local communities conducted by our 60 United Ways and United Funds.
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Education, so that children are prepared for and succeed in school;
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Income/Financial Stability, so that individuals and families may achieve and sustain financial stability;
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Health, so that individuals may access quality healthcare; and
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Strong Communities, where a statewide 2-1-1 network and a strong charitable sector help communities thrive.
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Frequently Requested Links / Documents
iauw.org - Learn about the Indiana Association of United Ways, current trainings and conferences and the ways we support local United Ways/Funds, partners and communities.
IaUW Policy / Advocacy info - Review and download IaUW Policy Priorities, Third House calendar, bill lists, fact sheets, talking points and testimony.
Federal Advocacy Action Center - Contact your member of Congress provided through our partnership with United Way Worldwide.
IaUW Policy Update Archive - Read prior issues, special articles and key documents produced by IaUW related to public policy and advocacy.
Community Report Card - Check out key indicators in Education, Income and Health for your neighborhood, county or region.
IN211.org - S earch for human service information available through the referral database or by calling 2-1-1. Download reports about resources, needs, gaps and trends from Indiana 211 Partnership.
NRN Calendar - Register for high-quality and affordable training for nonprofit staff and volunteers by the Indiana Nonprofit Resource Network.
Indiana General Assembly - Check the hearing or floor schedule, watch a live or recorded hearing or floor session and look up your legislators.
Congress.gov - Look up bills introduced or passed in Congress.
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