The IRS has published a list available here listing the entities at risk of automatically losing their tax-exempt status. It might be a good idea to check the current IRS list, which is available in excel format and can be sorted by state and city, to see if any organizations that you are connected to are at risk of losing their tax-exempt status.

The fact sheet sets forth 2 major requirements:

1. Employers are required to provide “reasonable break time for an employee to express breast milk for her nursing child for 1 year after the child’s birth each time such employee has need to express the milk” and
2. Employers are required to provide “a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk”

The fact sheet also contains guidance on time and location of breaks, compensation, and clarifies which employers are subject to the requirements.

What does this mean to businesses subject to these requirements?

In general, employers will need to have a policy in place regarding break time to express breast milk and provide an area free from intrusion and the public (other than a bathroom) for employees to express breast milk. For many businesses, this may be a managers office, conference room or similar are that can be secured (i.e. locked) to prevent intrusion.

What about other state law requirements?

The fact sheet indicates that this release does not preempt state law that provides greater protection to employees

In general, an employer must pay at least half the cost of single coverage to their employees. The IRS has published a FAQ, a guide, and a general notice.

This credit will apply to qualified employers (generally with less than 25 full time equivalent employees) and tax exempt organizations. A qualified employer is generally (1) an employer with fewer than 25 full-time equivalent employees for the tax year, (2) an employer were the average annual wages of its employees for the year must be less than $50,000 per full-time equivalent employees, and (3) where the employer pays the premiums under a “qualifying arrangement.”

The IRS.gov website contains helpful guidance on understanding the nuances of the credit.

The maximum credit for a qualified employer (not a tax exempt employer) is 35% of the employer’s premium expenses that count towards the credit.  The maximum credit for tax-exempt employers is 25% of the employer’s premium expenses that count towards the credit.

Hopefully this law will encourage hiring by small business and encourage employers to offer health care coverage to their employees.

Thanks to the Nonprofit Law Blog for posting about this.