CUPA-HR’s Public Policy Work

Josh Ulman and Donna Popovich

Advocacy in Action: Making a Mark in D.C. and On Your Campus

Donna Popovich, University of TampaJosh Ulman, CUPA-HR

July 13, 2018

Advocacy in Action Agenda

• Tax Reform Advocacy • How YOU Can Be an Advocate on Your Campus• FLSA Overtime Rule Advocacy• How YOU Can Get Involved This Time Around

Tax Reform• On December 22, President Trump signed

into law the $1.5 trillion tax bill that will overhaul the tax code

• VERY fast (7 weeks) & NOT transparent process

• The final bill preserved important higher ed tax benefits we fought to keep:Section 117(d) qualified tuition reduction Section 127 employer-provided tuition

assistance

Tax Reform – Actions after 2016 Election• CUPA-HR

– + other higher ed associations– prepared in advance & collaborated as a coalition

• Identified 10 tax benefits “at risk”

• CUPA-HR co-chaired subgroups– Section 117(d) – dependent & grad student tuition – Section 127 – employee tuition – Section 3121(b)(10) (Student FICA Exemption)

Tax Reform - Actions• Developed Talking Points for member use

– On campus– When talking to Congress

• Starting in May 2017, Higher Ed Tax Reform Coalition– Meetings with Congress & the Administration – Kept up outreach through December

• Coalition webpage launched in Oct – Information on all 10 higher ed issues of concern– A “Contact Congress” function

Tax ReformCUPA-HR surveyed members on 117(d)

Tax Reform - Impact

• 117(d) infographic used by media across the country

• Institutions & students shared personal storiesof the importance of the tax benefits that could be lost; picked up by media

• Why was that so powerful?

TAX REFORM – 117(d) News Coverage

Tax Reform - Impact• Coalition website

– 49,000+ page views– 32,000+ Contact Congress page views– 9,400+ individuals sent 28,000+ letters & tweets to Congress

Your campuses made a difference: 117(d) & 127 preserved!

• Even “losses” could have been worse: – e.g., excise tax on endowments (limit raised)

Tax Reform – Actual Impact on CampusChanges under the new law:• Unrelated business income (UBI) tax for certain fringe benefits

– Institutions taxed at 21 percent for :• Transportation benefits• On-site athletic facilities*• Moving expenses• Bicycle reimbursements• Employee achievement awards*

• Executive compensation excise tax• Endowment excise tax• Charitable contributions• International studentsResource: CUPA-HR guest blog post series from Sibson Consulting

How YOU Can Be an Advocate on Your Campus• Follow developing legal and regulatory environment before it

happens• Think about how it might impact your institution before

you have to implement it . . . and get blamed for it • Don’t just complain after the fact – change the trajectory• Be a resource for & partner with others on campus

– Your President/Chancellor, Provost & CFO– Your federal relations officer– Your chief HR officer (if that’s not you)

How CUPA-HR Interacts with Members

• Why HR should be joined at the hip with Federal Relations• Federal Relations officers “get” academic & research matters . . . • But they’re often clueless about employment/workforce

matters

• The value of a symbiotic relationship• What registers with the Federal Relations staff

Congress Can “Get It”If Higher Ed Makes Good Cases

• For example, listen to Lamar Alexander’s (R-TN) comments on the President’s “harebrained” budget proposal on university research indirect costs, in Senate Appropriations Committee session, here:

http://www.appropriations.senate.gov/hearings/hearing-to-review-the-fy2018-budget-request-for-the-national-institutes-of-health

Alexander’s comments start at about 1:28:30

Next Steps…

• If you’re a CHRO . . .

• If you’re an HR professional . . .– e.g., Benefits, Comp, Payroll, International Employment & Taxation

• What resources do CUPA-HR, ACE, and other associations offer?

FLSA Overtime Regulations• March 2014: President Obama issues Memorandum

• July 2015: DOL issues NPRM

• May 2016: Final Rule issued • Increased salary threshold by >100%

• Nov 2016: Final Rule Enjoined• Nationwide injunction. Court struck down excessively-high salary

threshold & automatic updating mechanism

• July 2017: DOL issues RFI

Overtime - ActionsPartnerships

• CUPA-HR partnered with SHRM to form Overtime Coalition • PPWO (Partnership to Protect Workplace Opportunity)

– 104 national associations

• Engaged other higher education associations in DC– Raised awareness on Capitol Hill and in the Administration about the

OT rule’s impact for higher ed– Regulatory Comments --* 2015 NPRM: 18 Associations sign on * 2017 RFI: 21 Associations sign on

Overtime - ActionsMembers

Member Surveys• Regulatory Comments

* 2015 NPRM: 819 Members Respond * 2017 RFI: 334 CHRO’s Respond

Research• 2016 Professionals in Higher Education Salary Survey Report

Webinars• Prep institutions for implementation of final rule

• Record-breaking # of attendees

Overtime - Actions

Communications:– FLSA – OT Advocacy Page

• Blog Posts• Insider Alerts • Fact Sheets• Talking Points

– Congressional Hearings• Laurita Thomas: Video Here• Andy Brantley: Video Here

– Op-Eds• WSJ: Colleges Brace for Overtime• Inside Hire Ed: Potentially Dire

Impacts– Video Campaign

• PPWO Video Here

Overtime - Actions

Grassroots:– Portal

• Form letters for industry sectors

– General – Business– Non-Profit– Higher Education

• Sent to Members of Congress and the Administration

– Orchestrated Public Sector Letter to Members of Congress• 30 associations representing

public-sector employers• Ask MOC to urge DOL to

reconsider

Overtime – Impact & OutcomesBy The Numbers

• 25% percent of all stakeholder meetings and • Nearly 50% of all letters to OMB . . . . were from higher ed (individual institutions or higher education associations)

• 2,283 letters sent on behalf of the higher ed community to Congress using the grassroots portal

• 350 Members of Congress co-signed varying pieces of legislation to limit unintended consequences

Vocal Members of Congress

• Rep. Bishop Speaks Out at Hearing: Here• Sen. Alexander Highlights Impact During Acosta Nom Hearing: Here

Overtime – On-Going Advocacy

• Even after the Obama rule was stopped, CUPA-HR continued to lobby

• Sought to have codified guidance on – Teachers– On-line learning– Extension agents

• April 12 - DOL issued new higher ed guidance• DOL also issued 3 new opinion letters

How YOU Can Get Involved This Time Around-Groundhog Day 2018-

• This fall, the whole process will start again!• YOU can play an important role on your campus and with our

advocacy in D.C. – we need you!

Thank You!

Donna Popovich – dpopovich@ut.edu Josh Ulman - julman@cupahr.org