Association Radar: 4 Items of Note

Posted By: Donna Oser, CAE Blog, Industry,
Destination Selection Resource

For association staff and volunteer leaders focused on developing a more intentional decision-making process for meeting destination selection in light of complex political issues, ASAE's Event Location: Questions for Consideration provides thoughtful questions to help leaders frame their decision-making.  

Mastercard Rules Affecting Subscription/Recurring Payments

Nonprofit associations and their foundations utilizing recurring billing may be relieved to learn that Mastercard is excluding nonprofits and charities from the new standards that went into effect in September 2022. After meeting with nonprofit leaders and analyzing nonprofit payment chargeback data, Mastercard published revised standards for nonprofits and charities. The original standards now only apply to non-profit and charity merchants that are identified for at least four months in the Acquirer Chargeback Monitoring Program. Keep in mind, implementing these recommended procedures for recurring donations/payments published by The National Council of Nonprofits is an excellent way to maintain member and donor trust and avoid being subjected to more demanding standards. 

Noncompete Agreements - Act Now

Earlier this month, the Federal Trade Commission (FTC)—the federal agency tasked with protecting consumers from unfair and deceptive business practices—announced a new proposed rule that, if enacted, will prohibit the use of noncompete agreements by employers in almost all circumstances. According to the FTC, the proposed rule is needed to combat allegedly unfair methods of competition that violate the Federal Trade Commission Act (FTCA). Noncompete agreements are a complex issue in the association community as they impact our varied stakeholders differently. MSAE, ASAE, and Venable Law Firm encourage industry groups and trade associations to consider submitting comments to the FTC. The current Administration is keen on implementing some form of regulation on noncompetes, so the comment period is a good opportunity to advocate for any specific details that may benefit your organization. The comment period on the proposed rule is open through March 10, 2023.

Overtime Rules - Monitor

In the fall of 2021, the U.S. Department of Labor's Wage and Hour Division noted in its regulatory agenda that it was reviewing the regulations for exemption of executive, administrative, and professional ("EAP") employees from the Fair Labor Standards Act's minimum wage and overtime requirements. However, more than a year has passed, and no rule has been proposed. This issue warrants monitoring because the Administration is expected to move to increase the weekly minimum salary for EAP exemptions, which could have a significant impact on nonprofits and associations. When issued, the public will have the opportunity to comment on the proposed rule. Such comments can significantly influence the rulemaking outcome, such as they did in 2016 with the Obama administration's proposed changes.