GNYADA March 2015 Newsletter

13 New FMLA Definition of Spouse

marriages may take FMLA leave to care for their spouse or family mem- ber, regardless of where they live and work. In other words, if a same-sex couple is validly married, they are “spouses” for FMLA purposes and can fully exercise their FMLA rights. The revised rule also applies to same- sex couples who were married out- side the United States, as long as the marriage was valid where entered and would be considered valid in at least one U.S. state.

Take qualifying exigency leave due to their lawfully married same-sex spouse's covered military service, or Take military caregiver leave for their lawfully married same-sex spouse. Dealers should educate supervisors about the new definition and its potential impact on FMLA leave requests and ensure they administer the FMLA rules equally and fairly with respect to all eligible employees. For additional information on the FMLA, including information and fact sheets on the revisions, visit http://www.dol.gov/whd/fmla/spouse/ index.htm . n n employer responsibility provisions. Labor laws dependent on the size of the employer, like the Family and Medical Leave Act, could also be affected. Dealers are encouraged to review their procedures for determining whether a worker is an independent contractor or employee. Visit the links below for information factors used to determine employee or inde- pendent contractor status: http://www.irs.gov/Businesses/Small- Businesses-&-Self- Employed/Independent-Contractor- Self-Employed-or-Employee

Effective March 27, 2015, workers in same-sex marriages will now have the same rights as eligible opposite- sex couples under the Family and Medical Leave Act (FMLA). Previously, the FMLA regulations defined "spouse" to include only mar- riages that were legally recognized in the state where the employee lives. Under the old rules, an employee in a same-sex relationship who lawfully married in NY but lived and worked in Kentucky, would have been denied FMLA leave to care for a spouse with a serious health condition. The new definition of spouse amends the regulatory definition of spouse so that eligible employees in same-sex If your dealership has 50 or more full-time employees, then the Affordable Care Act requires that you provide health insurance. Some employers, seeking to avoid expenses related to providing health insurance, may improperly categorize staff as independent contractors. The IRS is highlighting the distinc- tion between employees and inde- pendent contractors for compliance with state and federal guidelines. If the IRS finds that enough workers at a company are mislabeled as contrac- tors and not employees, then stiff penalties apply. These penalties are based on the entire payroll, not just the number of misclassified employees.

As a result of this change eligible employees will be able to:

Take FMLA leave to care for their lawfully married same-sex spouse with a serious health condition,

n

14 Independent Contractor or Employee? Affordable Care Impact

that wants to hire a New Yorker is more likely to be on the hook for payroll taxes and perhaps even health coverage. Dealers should review the classifica- tion guidelines set by both the IRS and the New York State Department of Taxation for the factors that will help you determine whether your employees are properly classified. Affordable Care Act Implications The IRS may deem an employer a large employer for purposes of the ACA if it determines that workers have been wrongly classified as inde- pendent contractors rather than employees. If the number of misclas- sified workers brings the employer to over the 50-employee threshold, the dealer must also be concerned about the implementation of the ACA’s

https://labor.ny.gov/formsdocs/ui/ia31 8.14.pdf

New York is especially strict when it comes to the distinction. A business

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • April 2015

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