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National Club Association 1201 15 th Street NW | Suite 450 | Washington, DC 20005 Toll Free: 800-625-6221 | Fax: 202-822- 9808 www.nationalclub.org NATIONAL CLUB ASSOCIATION 1201 15th Street NW | Suite 450 | Washington, DC 20005 Toll Free: 800-625-6221 | Fax: 202-822-9808 www.nationalclub.org ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel [email protected]

Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel [email protected]

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Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel [email protected]. Our Mission. “To defend, protect and advance the interests and well-being of private social and recreational clubs” - PowerPoint PPT Presentation

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Page 1: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

National Club Association1201 15th Street NW | Suite 450 | Washington, DC 20005Toll Free: 800-625-6221 | Fax: 202-822-9808www.nationalclub.org

NATIONAL CLUB ASSOCIATION1201 15th Street NW | Suite 450 | Washington, DC 20005

Toll Free: 800-625-6221 | Fax: 202-822-9808www.nationalclub.org

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Government Matters:2012 UpdateBrad D. SteeleVice Pres. of Government Relationsand General Counsel

[email protected]

Page 2: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

OUR MISSION “To defend, protect and advance the interests and well-being of

private social and recreational clubs”

As the trade association for the private club industry, NCA is based in Washington, DC to: Be involved in the political world, and Shape the policies that come from it

Simply put, we make sure the private club industry’s voice is heard On Capitol Hill, In the agencies, In the statehouses, and In the courthouses

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 3: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

TODAY’S ROADMAP

Election Review Legislative Outlook Regulatory Outlook

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 4: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

ELECTION REVIEW

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 5: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE HOUSE OF REPRESENTATIVES Balance of power:

Pre-election: 242 Republicans - 193 Democrats Post-election: 232 Republicans – 193 Democrats, as of now

10 seats still too close to call (7 Republican, 3 Democratic) Reps. Bachmann (R), Bono Mack (R), and Barber (D) (replaced Giffords)

Republicans flipped 10 seats and Democrats flipped 13 seats So, net gain of three seats for the Democrats

Total net loss can be no more than 10 for Republicans Speaker of the House John Boehner (R-Ohio) will retain the gavel

Worst case scenario is the Republicans have a majority of 14 seats Redistricting caused races to be interesting

Four of the 11 Republican seats in Illinois flipped Three of the seven Democratic seats in North Carolina flipped

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 6: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE SENATE Balance of power:

Pre-election: 53 Democrats (with 2 Independents) – 47 Republicans Post-election: 55 Democrats (with 2 independents) – 45 Republicans

Republicans flipped Nebraska Democrats flipped Indiana, Maine and Massachusetts and held six of their

seven other six open seats Conn., Hawaii, N.M., N.D., Va., and Wis. – Neb. was the seventh

So, net gain of two seats for Sen. Majority Leader Harry Reid (D-Nev.) Major success for the Democrats to their expand majority

However, without 60 votes, the Republicans will still be able to filibuster any controversial bill The gridlock will only get worse

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 7: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE WHITE HOUSE The President wins re-election

2012 vote: 60,100, 000 (51%) – 57,415,000 (49%) 2008 vote: 66,880,000 (53%) – 58,340,000 (46%)

2012 Electoral College vote: 303 – 206 (Fla.’s 29 still to close to call) 2008 Electoral College vote: 365 – 173 First President to win re-election with less EC votes than the previous

election 2012 States: 26 (w/DC) – 24 (Fla. is too close to call)

2008 States: 29 (w/DC) – 22 The President won every battleground state: Colo., Iowa, Nev., N.H., Ohio,

Va., Wis., and Fla. is leaning his way Ind. and N.C. returned to the Republican fold, but it did not matter

At the end of the day, the polls were right

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 8: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

LEGISLATIVE OUTLOOK

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 9: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) The law will go into effect on January 1, 2014

This year’s new requirement – the W-2 reporting mandate Clubs must disclose all money spent for health insurance premiums by both

the employer and employee on the employee’s W-2 form Clubs that issued less than 250 W-2s in the preceding year are exempt in

2012

Still not taxable income, yet.... However, the President has proposed removing the tax exemption for

those who traditionally join private clubs

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 10: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) American Health Benefit Exchanges

By 2014, each State must have an Exchange that offers government approved plans

It is a marketplace to purchase health insurance policies – like Travelocity or Expedia

An Exchange must: Certify that each policy meets the government established requirements Provide a comparative analysis of each plan Provide cost information for each plan Assign a rating to each plan

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 11: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) The Exchange and private clubs

SHOP Exchange – Small Business Health Options Program Clubs with 100 or less employees may use the Exchange to purchase

insurance for their workers All such employers may pool together to lower costs States may allow clubs with 100 + employees into a SHOP Exchange in

2017

Club leadership may select the level of coverage and employees may select any plan within that level Platinum Level – 90/10 Gold Level – 80/20 Silver Level – 70/30 Bronze Level – 60/40

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 12: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) Beginning March 1, 2013, clubs are required to notify employees

about the Exchange HHS will provide a model disclosure form You must disclose:

What services the Exchange provides, How to contact it, That your employees may be eligible to receive a tax credit or subsidy,

and That they may lose the employer’s contribution, but any payment they

make for health insurance will be tax exempt

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 13: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) The Employer Mandate

Clubs with an average of 50 full-time employees must offer insurance Clubs with 50 that offer ins. will be fined $3,000 for each employee who:

Is not offered or declines the plan, goes to the Exchange and receives a tax credit or subsidy

Clubs with 50 that do not offer ins. will be fined $2,000 per full-timer (less the first 30) if: One employee goes to the Exchange and receives a tax credit or subsidy

Clubs will only pay the lesser of the total $3,000 penalty vs. the total $2,000 penalty Penalties are indexed to the nat’l average premium growth rate

So, who is “full-time” and how does he get a tax credit or subsidy

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 14: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) Full-time employee – one who is employed on average at least 30

hours/week during any month (120 hours in a four-week span) These are the employees who will determine if you fall under the law These are the employees to whom you must offer ins. or risk being fined The IRS has issued a request for comments on this definition and its

workability – 130 hours/month

Part-time employees are to be counted when determining if your club has 50 full-timers Take the total hours worked by part-timers in a month and divide by 120

then add that number to the number of full-timers to see if you reach 50 Part-timers are counted but you don’t have to offer them insurance

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 15: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) What about Variable Hour Employee – is he full-time?

Variable Hour Employee – Based on facts and circumstances at his start date, it cannot be determined he is reasonably expected to work 30 hours/week

If he is full-time, you must offer ins. or risk being fined

Ongoing Variable Hour Employees – Safe Harbor from fine Club picks a Standard Measurement Period (3-12 months) and a Stability

Period (6-12 months, but no shorter than SMP) If the employee averages 30 hours/week during the SMP, he is full-time

Club must offer him ins. for the Stability Period If he does not, no need to offer ins. A club following this guidance will not be fined if the employee goes to the

Exchange and receives a tax credit or subsidy

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 16: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) New Variable Hour Employees – Safe Harbor from fine

Club picks an Initial Measurement Period (3-12) and the Stability Period but the Stability Period must be the same number of months as for ongoing employees

If the employee averages 30 hours/week during the IMP, he is full-time Club must offer him ins. for the Stability Period

If he does not, no need to offer ins. BUT, club must test him again as an “ongoing employee” beginning with

the 1st SMP that begins after his start date – this may overlap with the IMP

A club following this guidance will not be fined if the employee goes to the Exchange and receives a tax credit or subsidy

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 17: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) Administrative Period – Safe Harbor from fine

For ongoing employees, a clubs may have a 90 day Administrative Period between the SMP and the Stability Period to get these employees notified and enrolled in a plan

For new employees, a club may delay the start of the IMP and it may also have an Administrative Period after the IMP BUT, the total delay may still only be 90 days Also, the IMP and the Administrative Period cannot total more than 13

months from a new employee’s start date

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 18: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) Employee eligibility for the Exchange’s tax credit or subsidy

For clubs that offer ins., a FTE is eligible for a tax credit/subsidy if: That employee’s household income is no more than 400% FPL ($92,200

for a family of 4), and His premium cost for a self-only plan is more than 9.5% of his

household income – “unaffordable” IRS proposed safe harbor – no fine for a club if the employee’s

premium cost is no more than 9.5% of his W-2 wages Eligibility is also there if the insurance plan pays less than 60% of health

care costs HHS will issue guidance on how to determine if a plan meets this

requirement For clubs that don’t offer ins., a FTE is eligible if:

That employee’s household income is no more than 400% of FPL

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 19: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA)

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 20: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) Rules for seasonal workers

If a club has 50 full-timers, then its full-time seasonal workers must be offered insurance If the seasonal workers are new Variable Hour Employees, then the IMP

may be longer than their seasonal employment If a club has less than 50 full-timers, but seasonal workers push it over the

threshold, then: Club will have to offer ins. if it reaches the threshold for more than 120

days with clearly full-time seasonal workers Club will not have to offer if it reaches the threshold for 120 days or less If your seasonal workers are Variable Hour Employees, then you may have

to establish whether they are full-time for the 120 day requirement (and offer ins. to your other full-time employees), but you will not have to offer ins. to the seasonal workers until after the IMP

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 21: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) Rules for probationary periods for new full-time employees

Clubs with 200 or less employees You may have up to a 90 day probationary period for new full-time

employees before offering insurance New Variable Hour Employees who are later deemed to be full-time will

have longer than 90 days because of the Initial Measurement Period Clubs with more than 200 full-time employees

You may not have a probationary period and must automatically enroll new full-timers in the insurance plan

New Variable Hour Employees who are later deemed full-time will have the Initial Measurement Period as their probationary period

This requirement has been delayed until regulations are issued

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 22: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) What must be included in the government approved plans?

Each plan must have the government’s Essential Health Benefits package: Ambulatory patient services Emergency services Hospitalization and prescription drugs Maternity, newborn care and pediatric services, with oral/vision care Mental health, behavioral health and substance use disorders services Rehabilitative and habilitative services and devices Laboratory services Preventative, wellness & chronic disease services (no cost to employee)

HHS will add other benefits, too These new benefits are expected to increase costs by an average of 3%-5%

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 23: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTIONAND AFFORDABLE CARE ACT (ACA) All government approved plans must be “nondiscriminatory”

The nondiscrimination rules are in the Internal Revenue Code § 105(h) Clubs are required to offer the same benefits, waiting periods, contributions

and type of coverage to all classes of employees regardless of their compensation

Failure to meet this requirement makes the plan discriminatory and the fine is $100/day for each employee the plan discriminates against

There is a cap of the lesser of $500,000 or 10% of the price of the plan the club paid the previous year

This requirement has been delayed until regulations are issued

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 24: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) What additional costs can be expected?

A fee on drug manufacturers Starting next year, a 2.3% tax on medical device makers

A bill to repeal this tax passed the House 270-146; no action in the Senate Starting in 2014, an insurance comp. fee for all policies sold - a.k.a. the

“Health Insurance Tax” (HIT) This is expected to cause a nearly 4% premium increase

Starting in 2018, a 40% excise tax on ins. companies for selling high cost policies $10,200 premium threshold for self-only plans $27,500 premium threshold for family plans

All of these new costs will be added to your club’s insurance premium

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 25: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) What new taxes will be imposed on club members?

New Medicare taxes starting 2013 For unearned income, a 3.8% tax on net investment income (interest

and dividends) for those making more than $200,000/$250,000 For earned income, a payroll tax hike of .9% for every dollar made over

$200,000/$250,000 (payroll adjustments need to be in place) Neither one of these is indexed for inflation

Clubs need to budget for a potential decrease in revenue With the .9% payroll tax increase alone, a club with 50 families making

$500,000 per year could lose over $100,000

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 26: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE PATIENT PROTECTION AND AFFORDABLE CARE ACT (ACA) Congressional Budget Office (CBO) issued new projections this year

CBO said the total cost for the ACA in ‘10-’19 was $938 billion The ‘14-’23 cost is now $2.6 trillion

CBO says more employers will stop offering insurance New estimates say gov’t will earn $15b because of the employer mandate A House Ways and Means survey found 70% of Fortune 100 companies:

Could save $29 billion by dropping ins. in 2014 ($415 million each), and Could save almost $422 billion from ‘14-’23 (nearly $6 billion each)

CBO also says 4 million employees will go into Exchanges (2.5%?) Ways and Means survey says up to 65 million could go into Exchanges More people in Exchanges means more subsidies paid by gov’t

Thus, greater pressure on Congress to hike taxes on private club members

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 27: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

POTENTIAL TAX INCREASES 1/1/13, the marginal income tax rates go up

The 28% rate will jump to 31% The 33% rate will jump to 36%, and The 35% rate will jump to 39.6%

Capital gains and dividend tax rates go up, too Capital gains increases from 15% to 20% Dividend rates go from 15% to an individual’s marginal rate

Family making $500,000 will pay more than $11,000 in new fed. taxes With 20 such families at your club, you could lose more than $200,000/yr.

Do not forget that the payroll tax break and many business tax breaks expire on 1/1/13, too

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 28: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

REGULATORY OUTLOOK

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 29: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

DEPT. OF LABOR’S H-2B REGULATIONS H-2B “Wage Rule”

Hikes the “prevailing wage” by nearly $4.50/hour Rule was to go into effect on September 30, 2011

NCA and our allies on the H-2B Workforce Coalition filed suit DOL delayed the rule to let the court act, then Congress stepped in

Congress passed DOL’s spending bill for FY13 and removed funding for it Unfortunately, the funding law is good for only 6 months of FY13 Thus, clubs are relieved from this requirement until March 27, 2013

The lawsuit is still pending

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 30: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

DEPT. OF LABOR’S H-2B REGULATIONS The H-2B “Overhaul Rule” – revamps the entire program

Corresponding Employment: Clubs must pay U.S. workers the prevailing wage if they do

“substantially the same work” as H-2B workers Not for U.S. workers who have been employed at least 1 year and

whose responsibilities aren’t cut back Clubs must pay H-2B workers 75% of their hours in a 12 week period -

whether they work or not Full-time for H-2B workers is 35 hours not 30 Clubs must post a “workers’ rights poster” from DOL in all necessary

languages

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 31: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

DEPT. OF LABOR’S H-2B REGULATIONS The H-2B “Overhaul Rule,” continued

Clubs must pay transportation, hotel, food and visa costs for H-2B workers or reimburse them in the first week Clubs must provide transportation costs to U.S. workers and offer

housing if it is offered to their H-2B workers Clubs must offer the job to a U.S. worker up to 21 days before the H-2B

worker is to start – even if the H-2B worker is already on the way “Temporary” is now 9 months not 10

A federal lawsuit was filed in Florida to stop the rule The judge stopped the rule until the case is resolved and DOL appealed

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 32: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

NATIONAL LABOR RELATIONS BOARD The National Labor Relations Board (NLRB) is a five-member board

that governs relations between unions and employers Majority selected by the President It can issue regulations and establish case law

On 1/1/12, the NLRB lost one member and was left with only two On 1/4/12, the President recess appointed three new members This is the first time a President has used the recess appointment power

while the Senate was still in session Questions have been raised regarding the legality of these

appointments If the appointments were done inappropriately, then everything the

NLRB does will be thrown out, but until then clubs must follow the NLRB’s rules/case law

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 33: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

NLRB REGULATIONS

The “Poster Rule” – was to start April 30, 2012 Clubs must display a “Notification of Employee Rights” poster describing:

How employees can unionize, and What constitutes unfair labor practices

However, the poster does not state how employees may decertify a union Failure to post the notice is an “unfair labor practice” in and of itself NCA’s issue with this rule is that disgruntled employees will have more of

an opportunity to bring a union into the club or file unfounded claims against the club If this happens, immediately contact club counsel before responding to

employees

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 34: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

NLRB REGULATIONS

The “Poster Rule,” continued NCA and our allies filed a federal lawsuit in D.C. to stop the rule

The District Court ruled against us and we appealed The U.S. Court of Appeals stopped the rule until the case is resolved

The decision should come by the end of the year A similar case was also filed in a South Carolina federal court

That District Court ruled for us and the NLRB appealed The U.S. Court of Appeals could rule by late Spring 2013

If we lose the DC appeal, we will ask to stop the rule from going into effect until the South Carolina appeal is resolved

We have used the S.C. judge’s rationale to bolster our DC appeal argument

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 35: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

NLRB REGULATIONS

The “Quickie Election Rule” – was to start April 30, 2012 Allows unions to call for an election within 10-21 days of a petition being

filed Severely limits your workers’ ability to receive complete information about

union costs Severely limits a club’s ability to effectively prepare for a union election

battle Promotes union “stealth campaigns”

This is where union organizers quietly secure the necessary votes and then call for an election

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 36: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

NLRB REGULATIONS

The “Quickie Election Rule,” continued The Chairman of the House Education and the Workforce Committee, Rep.

John Kline (R-Minn.), introduced a bill to kill the “Quickie Election Rule” It passed the House, but no action in the Senate

On the same day that bill passed the House, the NLRB passed the rule 2-1 NCA and our allies filed a federal lawsuit in this matter, too

The D.C. District Court ruled for us and the NLRB appealed The decision should come by mid-2013

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 37: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

NLRB CASE LAW Specialty Healthcare

NLRB ruled that unions are entitled to select smaller subsets of larger employee groups to organize

Burden is on employers to prove that the excluded employees “share an overwhelming community of interest” with the smaller subset

Lancaster Symphony Orchestra NLRB ruled musicians were employees (not independent contractors) and

could vote on forming a union Since orchestra set work hours, pay schedules, dress code and standards

for behavior, they were “employees”

Roundy’s, Inc. (Pending) Will give unions access to clubs during business hours to campaign if you

let others into the club during business hours (Red Cross, etc.)

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 38: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

DOL’S DISCLOSURE REGULATION

The “Gag Rule” DOL issued a proposed rule that will severely impact a club’s ability to get

legal advice during a union organizing campaign If a club hires a lawyer to help with almost any aspect of a union

campaign, then it must file complicated disclosure reports with DOL It is a paperwork nightmare

The lawyers must also file reports disclosing all clients seeking labor advice and the fees charged Many law firms will pull back from this type of work

Without lawyers, most clubs will be unable to effectively give their side of the story

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 39: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

NLRB & DEPARTMENT OF LABOR

Together, the NLRB’s regulations/rulings and the Dept. of Labor’s rule mean: Unions will have more agitated workers because of the “Poster Rule;” Unions will have a quicker official election campaign because of the

“Quickie Election Rule;” Unions will be able to target a smaller subset of your workers; Unions will be able to include your caddies and other independent

contractors; Unions will be entitled to come onto your property during business hours

to conduct the campaign; and Unions will be less likely to encounter opposition because you can’t find

adequate legal assistance

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS

Page 40: Government Matters: 2012 Update Brad D. Steele Vice Pres. of Government Relations and General Counsel steele@nationalclub.org

THE NATIONAL CLUB ASSOCIATIONYOUR VOICE IN WASHINGTON, D.C. – JOIN TODAY!

ADVOCATE FOR CLUBS, ANSWERS FOR CLUB LEADERS