Federal District Court Judge Holds Clergy Housing Allowance Exemption Unconstitutional

As of last week, religious institutions and the clergypersons who serve them have been put on notice:  Subject to appeal, a Federal statute that provides an exemption for the housing allowance for clergy members has been held unconstitutional.  For now, the holding affects only clergy who receive cash compensation for a housing allowance, not clergy who reside in a parsonage or other accommodations provided for the convenience of the employer.

Mandatory Employer Notice for Health Care – Upcoming Deadline

While most small nonprofit organizations (less than 50 employees) are not required to offer health care coverage to employees under the Patient Protection and Affordable Health Care Act (“the Act”) all employers are required to comply with the Act’s notice requirements.  The deadline is October 1, 2013 – right around the corner! 

Nonprofit organizations may satisfy the Act’s notice requirements simply by distributing one of the two model notices on the United States Department of Labor’s website.  One version is for employers who do not offer any health care plan, and the second version is for employers who offer a health care plan to some or all employees.

Notices must be provided to all current employees, as well as to all later hired employees.  Failure to comply with the notice requirement could result in fines as much as $100 per employee, per day of noncompliance.