Page 3 - The Edge - Winter 2017

Did your team set

NEW YEAR’S RESOLUTIONS? CONTENTS

The The
While New Year’s resolutions often range from losing weight to spending less money, they WINTER 2017 Arizona Association of
often also include setting professional goals. For those of us who work in and around employee School Business Of cials
benefits, setting resolutions starts with us reviewing things that have happened (or not
happened) in 2016 to determine what resolutions we may need to make, what benefit plan Arizona Association of School Business Of cials • 2100 North Central Ave., Suite 202 • Phoenix, AZ 85004 • www.aasbo.org • (602) 253-5576
updates we should consider, and to evaluate our processes and practices as we look ahead for
this new year. Our focus here will be non-Affordable Care Act (ACA) related employee benefits OFFICERS & DIRECTORS
compliance. Yes, believe it or not, things continue to happen outside the realm of ACA! OFFICERS WHAT’S INSIDE
PRESIDENT
Ken Hicks, Peoria Uni ed School District
New White Collar Exemption Rules Veteran HSA Eligibility PRESIDENT ELECT
Ricky D. Hernandez, Pima County School
The federal Fair Labor Standards Act (FLSA) requires IRS guidance previously disqualified veterans from Superintendent’s Of ce 5 A Message from the President
that most covered employees be paid at least the making health savings account (HSA) contributions VICE PRESIDENT 7 Executive Director’s News & Notes
federal minimum wage for all hours worked and in any month if the individual received Veteran Jill Barragan, Avondale Elementary School District
overtime pay at time and one-half the regular Affairs (VA) medical benefits at any time during PAST PRESIDENT 8 How Much Due Diligence Is Enough?
rate of pay for all hours worked over 40 hours the previous three months. By 2017, individuals Jeremy Calles, Kyrene Elementary School District 10 It’s Time to Submit Nominees for Best Practices
in a workweek. However, Section 13(a)(1) of the will receive VA medical benefits and remain HSA TREASURER
Lizette Huie, Sahuarita Uni ed School District
FLSA provides an exemption from both minimum eligible — provided they are receiving benefits at 12 Is Governing Board Approval Needed for Cooperative Purchases?
wage and overtime pay for bona fide executive, the VA for preventative services or services related DIRECTORS 15 Providing Great Customer Service in a Compliance World
administrative, professional, and outside sales to the employee’s “service-connected disability.” DIRECTOR OF MEMBER SERVICES
employees. Section 13(a)(1) and section 13(a)(17) Accordingly, employers may have to modify not Joanne Fimbres, Pendergast Elementary School District 17 School Funding – Expert Says Some Good and Bad News
also exempt certain computer employees. These only their plan designs to accommodate this DIRECTOR OF PURCHASING 21 Using Technology to Communicate with Students
Gary Barkman, Mesa Public Schools
exemptions are generally referred to collectively as change, but also modify open enrollment and DIRECTOR OF EDUCATIONAL PROGRAMS
the “white collar” exemptions. On May 23, 2016, employee communication surrounding their HSA Shari Zara, Arizona Department of Education 23 Here’s How to Make Communication Effective
the U.S. Department of Labor published a final eligibility. DIRECTOR OF TRANSPORTATION 24 What to Expect from the Legislature, Washington in 2017
rule updating the regulations regarding the white Bert Herzog, Washington Elementary School District
collar exemptions. The final rule went into effect EEOC Proposed ADA and GINA Rules DIRECTOR OF MAINTENANCE AND OPERATION 28 Lawmakers from Both Parties Express Support for Schools
on December 1, 2016. Last year the Equal Employment Opportunity Roy Sucanick, Creighton Elementary School District 32 More Than One Way to Count Students
Commission (EEOC) issued proposed guidance on DIRECTOR OF INFORMATION TECHNOLOGY
David Sanders, Mesa Public Schools
Important: On November 22, 2016, a federal district the application of the American with Disabilities DIRECTOR OF BUSINESS ADMINISTRATION 33 Ducey’s Council Makes K12 recommendations, details are vague
court in Texas granted a preliminary injunction Act (ADA) to employer wellness programs. Then Annette Moreno, Pendergast Elementary School District 34 Rep, Carter Works on ‘Grand Plan’ for Education Funding
that temporarily blocks the U.S. Department of the EEOC issued more proposed guidance relating DIRECTOR OF CHILD NUTRITION
Labor (DOL) from implementing and enforcing its to employer wellness programs, this time under Sandra Schossow, Peoria Uni ed School District 35 Douglas proposes spending additional $680 million on education
recent final rule. Employers should note that this the Genetic Information Nondiscrimination Act VENDOR REPRESENTATIVE 36 4 Arizona schools honored as National Blue Ribbon Schools for 2016
is only a temporary injunction, not a permanent (GINA). Although both sets of guidance are still Deborah L. Sandoval, Mohave Educational
Services Cooperative, Inc.
one. The injunction applies nationwide and simply in the proposition stage, employers that have or 38 How to meet demand for tech-related jobs – get students interested in art
prevents the regulations from going into effect on are thinking about implementing a wellness plan STAFF
December 1. There will be a decision issued at a should be aware of the impact these proposed EXECUTIVE DIRECTOR AASBO’s Strategic Partners
David Lewis
later date on the actual merits of the case. rules have and be ready to adjust their plans as DIRECTOR OF GOVERNMENT RELATIONS
necessary. Dr. Chuck Essigs
Same-Sex Marriage DIRECTOR OF EDUCATION PROGRAMS
On June 26, 2015 the Supreme Court ruled the Researchers have long agreed that the best way Jeff Gadd
constitution guarantees the right to marry, striking to stick with your resolutions through the new year DIRECTOR OF RESEARCH AND STUDENT ACHIEVEMENT ANALYSIS
down all state bans on same-sex marriage. is to plan ahead, set realistic goals and write your Anabel Aportela AASBO’s Alliance Partners
Though not an employee benefits ruling directly, goals down. Remember a goal not in writing is MEMBERSHIP SERVICES COORDINATOR
Ana Sanchez
this decision impacts employee benefits in simply a wish. Best of luck as you start the new year COMMUNICATIONS COORDINATOR
eligibility, taxation and domestic partner benefits and remember we are here to help you achieve Audrey Hawthorne
considerations. Employers should understand what your health and benefit resolutions!
impact this ruling has on their employee benefits MISSION
programs and payroll practices, and determine The Mission of the Arizona Association of School Business
if changes are warranted. For example, does it Of cials (AASBO) is to Promote the Highest Standards
of School Business Management by Providing Quality
make sense to continue to offer domestic partner Training, Legislative Leadership, and Cultivating the
benefits now that same-sex couples may marry? Professional Stature of its Members. To advertise in The Edge, please call 602.889.7125. The EDGE is produced by Arizona News Service custom publishing division.
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