An old adage in Washington, DC is that if politicians cannot legislate; then bureaucrats will regulate. Indeed, every business in America deals with some form of government regulation that ties its hands and makes it more difficult to succeed.
A critical function of NCA is to keep its members aware of any new regulations that may be proposed by government agencies. To that end, NCA periodically issues Regulatory Alerts for members. Most importantly, we work to minimize the impact new regulations have on clubs, and give our members guidance on how to comply with any new rules once they are issued.
The FTC’s Red Flags Rule
With identity theft on the rise, the Federal Trade Commission has decided to require private clubs to create Identity Theft Prevention Plans to help ensure their members’ identities are not stole through purchases at the club. At first blush, this seems like a reasonable response to a serious problem, but since private clubs are rarely targets for identity thieves the red tape could cause many problems for club leaders and their staff. However, unless legislation is passed exempting small businesses like private clubs, the club industry will need to prepare for the FTC’s rule. To read more, members can login and click on "Members-Only Documents."
Social Security No-Match Regulations
With the former No-Match regulations rescinded and no new rules coming and with a shift in enforcement strategy away from the illegal immigrant and to the employer, many private clubs dread the receipt of the Social Security Administration’s No-Match letter. Though No-Match letters have been prohibited from being issued over the last 3 years, that prohibition has ended and the employer who unintentionally hires an undocumented worker may now find itself in significant trouble. However, with diligence and a commitment to resolve the No-Match issue, clubs can overcome the legal perils. To read more, members can login and click on "Members-Only Documents."
COBRA Subsidy Payments
With the recession causing many individuals to be laid-off, those individuals were left with the choice of going without health insurance until they found another job or paying a comparatively high premium for health insurance through COBRA. Since this ultimately meant that many chose not to have coverage, the COBRA premium subsidy was introduced. Any private club that has had to laid-off an employee between 9/1/08 and 5/31/10 due to the economic crisis must make certain payments for that former employees COBRA premium. To read more, members can login and click on "Members-Only Documents."
FLSA Seasonal Exemption for Private Clubs
In a major victory for the club industry, private clubs are entitled to the benefits of the Fair Labor Standards Act seasonal exemption for overtime compensation. This benefit is crucial to the cost-effective running of clubs throughout the United States. To understand the exact impact of this regulation on your club and your bottom line, members can login and click on "Members-Only Documents."
