ACCORDING
TO THE RULES
U.S.
Anti-Faxing Rules
Employee
vs. Independent Contractor
U.S.
Anti-Faxing Rules
The Federal Communications Commission (FCC)
published new regulations governing unsolicited fax
advertisements in the Federal Register on Friday, July
25. The rules are set to go into effect on Monday,
August 25.
American associations are in panic mode
as the new rules are expected to significantly impact
the ability to fax members, prospective members, and
customers.
The new rules remove the
"established business relationship"
qualification from the fax regulations, and require
associations and other companies to obtain the written
consent of their own members, clients and industry
partners before transmitting any fax that could be
interpreted as commercial in nature.
It appears that a member calling the
association to ask that an item be faxed to them is
insufficient... permission to fax must be in writing,
and must contain the individual's signature and fax
number. It also appears that the permission cannot
be in faxed form...it must be in hard copy or
electronic.
It is our understanding that is covers
any fax of a commercial nature, and that anything
involving money is being interpreted as such.
The potential penalties are very high,
and given the tight time frame, many U.S. associations
are wondering how they can get written permission from
all their members and customers in time to carry on
business as usual.
There are a number of areas of
uncertainty as to the effect of the rules, and this is
increasing anxiety levels. The American Society of
Association Executives (ASAE) is encouraging members to
respond to the FCC.
Employee
vs. Independent Contractor
Some associations treat individuals as
self-employed, rather than as employees of the
organization. It is critical to check the rules
and ensure that the individual qualifies as
self-employed, or the organization could be in for a
future expensive lesson.
The Canadian Customs and Revenue Agency
(CCRA) has a helpful publication
to determine whether an individual is employed or
self-employed. It includes some short
questionnaires that will assist associations in making a
determination regarding the individual's status.
Note: Incorporation by the individual
and/or a contract between the association and the
individual/corporation does not resolve the
situation. CCRA does not need to accept the
relationship even if it is laid out in a contract or
agreement. And, if the individual incorporates, and this
is their only income, then the personal services
business rules kick in, and that brings its own
challenges and issues. This CGA Magazine article
provides more information on this issue.
According to the Rules highlights
legislative, regulatory and similar issues that affect
the operation or governance of associations and other
not-for-profit organizations.
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