FW: Does anybody know yet? 11th hour change to EST Act about nonprofits?
From: John Clexton Sent: Friday, February 21, 2025 10:47 AM To: Michigan Library Association <mla@milibraries.org> Cc: Membiela, Clare (MDE) <MembielaC@michigan.gov> Subject: Does anybody know yet? 11th hour change to EST Act about nonprofits? This morning, our finance team received a memo containing the following statement: The definition of "employer" expressly exempts a "nonprofit agency" from its definition. Beyond this, the legislation does not provide exemptions for any businesses or organizations (though see "accrual" for new rules regarding small businesses). Does this exemption refer to certified nonprofits or nonprofits categorized by tax code? Does our financial people have it wrong? I would appreciate any clarification on this matter. Thank you, John John Clexton 2025 ARSL President Library Director Gladwin County District Library jclexton@gcdl.org<mailto:jclexton@gcdl.org> 989-347-1007 [cid:image001.png@01DB844D.F8DB6E40]
Hello John: I will look into this now, but public libraries have NEVER been considered as "non-profits." Even if your library has a 501(c)(3), you are still a governmental entity. I will get info back to everyone as soon as I have it. Clare Clare D. Membiela, MLS, J.D. Library Law Consultant Library of Michigan MembielaC@michigan.gov<mailto:MembielaC@michigan.gov> 517-335-8132 The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. "the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge." Griswold v. Connecticut, 381 U.S. 479, 482 (1965). Michigan's Top 10 Strategic Education Plan<https://www.michigan.gov/mde/resources/michigan-top-10-strategic-education-plan> provides focused direction to drive educational achievement in support of all learners. [Michigan's Top 10 Strategic Education Plan] [Michigan.gov/Vote logo Description automatically generated]<https://mvic.sos.state.mi.us/> Get personalized voter information on early voting and other topics at Michigan.gov/Vote<https://mvic.sos.state.mi.us/>. From: Michlib-l <michlib-l-bounces@mcls.org> On Behalf Of John Clexton via Michlib-l Sent: Friday, February 21, 2025 11:00 AM To: michlib-l@mcls.org Subject: [Michlib-l] FW: Does anybody know yet? 11th hour change to EST Act about nonprofits? CAUTION: This is an External email. Please send suspicious emails to abuse@michigan.gov<mailto:abuse@michigan.gov> From: John Clexton Sent: Friday, February 21, 2025 10:47 AM To: Michigan Library Association <mla@milibraries.org<mailto:mla@milibraries.org>> Cc: Membiela, Clare (MDE) <MembielaC@michigan.gov<mailto:MembielaC@michigan.gov>> Subject: Does anybody know yet? 11th hour change to EST Act about nonprofits? This morning, our finance team received a memo containing the following statement: The definition of "employer" expressly exempts a "nonprofit agency" from its definition. Beyond this, the legislation does not provide exemptions for any businesses or organizations (though see "accrual" for new rules regarding small businesses). Does this exemption refer to certified nonprofits or nonprofits categorized by tax code? Does our financial people have it wrong? I would appreciate any clarification on this matter. Thank you, John John Clexton 2025 ARSL President Library Director Gladwin County District Library jclexton@gcdl.org<mailto:jclexton@gcdl.org> 989-347-1007 [cid:image004.png@01DB8455.CB3A6510]
Hello John: Here is a copy of the enrolled bill - https://www.legislature.mi.gov/documents/2025-2026/billenrolled/House/pdf/20... Here is the legislation's page (with analyses, etc.) https://www.legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4002 It looks like the amendment process cleaned up the language regarding the definition of "Employer." The term "nonprofit agency" was removed from the definition - but that doesn't mean those entities are exempted - the language of the final definition is pretty clear that ALL employers other than US Federal government employees are included: [Graphical user interface, text, application Description automatically generated] Perhaps they were looking at a previous version? Clare Clare D. Membiela, MLS, J.D. Library Law Consultant Library of Michigan MembielaC@michigan.gov<mailto:MembielaC@michigan.gov> 517-335-8132 The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. "the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge." Griswold v. Connecticut, 381 U.S. 479, 482 (1965). Michigan's Top 10 Strategic Education Plan<https://www.michigan.gov/mde/resources/michigan-top-10-strategic-education-plan> provides focused direction to drive educational achievement in support of all learners. [Michigan's Top 10 Strategic Education Plan] [Michigan.gov/Vote logo Description automatically generated]<https://mvic.sos.state.mi.us/> Get personalized voter information on early voting and other topics at Michigan.gov/Vote<https://mvic.sos.state.mi.us/>. From: Michlib-l <michlib-l-bounces@mcls.org> On Behalf Of John Clexton via Michlib-l Sent: Friday, February 21, 2025 11:00 AM To: michlib-l@mcls.org Subject: [Michlib-l] FW: Does anybody know yet? 11th hour change to EST Act about nonprofits? CAUTION: This is an External email. Please send suspicious emails to abuse@michigan.gov<mailto:abuse@michigan.gov> From: John Clexton Sent: Friday, February 21, 2025 10:47 AM To: Michigan Library Association <mla@milibraries.org<mailto:mla@milibraries.org>> Cc: Membiela, Clare (MDE) <MembielaC@michigan.gov<mailto:MembielaC@michigan.gov>> Subject: Does anybody know yet? 11th hour change to EST Act about nonprofits? This morning, our finance team received a memo containing the following statement: The definition of "employer" expressly exempts a "nonprofit agency" from its definition. Beyond this, the legislation does not provide exemptions for any businesses or organizations (though see "accrual" for new rules regarding small businesses). Does this exemption refer to certified nonprofits or nonprofits categorized by tax code? Does our financial people have it wrong? I would appreciate any clarification on this matter. Thank you, John John Clexton 2025 ARSL President Library Director Gladwin County District Library jclexton@gcdl.org<mailto:jclexton@gcdl.org> 989-347-1007 [cid:image004.png@01DB8455.DFEAB870]
What about the number of employees? Are 10 or fewer exempt? From: "Michlib-l" <michlib-l@mcls.org> To: "John Clexton" <jclexton@gcdl.org>, "Michlib-l" <michlib-l@mcls.org> Sent: Friday, February 21, 2025 11:56:35 AM Subject: Re: [Michlib-l] Does anybody know yet? 11th hour change to EST Act about nonprofits? Hello John: Here is a copy of the enrolled bill - [ https://urldefense.proofpoint.com/v2/url?u=https-3A__www.legislature.mi.gov_documents_2025-2D2026_billenrolled_House_pdf_2025-2DHNB-2D4002.pdf&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=FEV6m-36SVDKPjvncF98j7p_UdNXH6ETk3xdTbmXWzw&e= | https://www.legislature.mi.gov/documents/2025-2026/billenrolled/House/pdf/20... ] Here is the legislation’s page (with analyses, etc.) [ https://urldefense.proofpoint.com/v2/url?u=https-3A__www.legislature.mi.gov_Bills_Bill-3FObjectName-3D2025-2DHB-2D4002&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=Y1NEWp0yx1wLlinupY4-QHkY-vJ1AJTA8x2kmsajV1c&e= | https://www.legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4002 ] It looks like the amendment process cleaned up the language regarding the definition of “Employer.” The term “nonprofit agency” was removed from the definition – but that doesn’t mean those entities are exempted – the language of the final definition is pretty clear that ALL employers other than US Federal government employees are included: Perhaps they were looking at a previous version? Clare Clare D. Membiela, MLS, J.D. Library Law Consultant Library of Michigan [ mailto:MembielaC@michigan.gov | MembielaC@michigan.gov ] 517-335-8132 The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. “the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge .” Griswold v. Connecticut, 381 U.S. 479, 482 (1965). Michigan’s [ https://urldefense.proofpoint.com/v2/url?u=https-3A__www.michigan.gov_mde_resources_michigan-2Dtop-2D10-2Dstrategic-2Deducation-2Dplan&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=cxDkvo5KPx05Fp9a2uk6Lrry2QxOk4Qz9kwjdboIzSU&e= | Top 10 Strategic Education Plan ] provides focused direction to drive educational achievement in support of all learners. [ https://urldefense.proofpoint.com/v2/url?u=https-3A__mvic.sos.state.mi.us_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=jAHo9WOYfoh0rKSO_5TbZ4lHtoaD1WzaKCb9U1ngkWw&e= ] Get personalized voter information on early voting and other topics at [ https://urldefense.proofpoint.com/v2/url?u=https-3A__mvic.sos.state.mi.us_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=jAHo9WOYfoh0rKSO_5TbZ4lHtoaD1WzaKCb9U1ngkWw&e= | Michigan.gov/Vote ] . From: Michlib-l <michlib-l-bounces@mcls.org> On Behalf Of John Clexton via Michlib-l Sent: Friday, February 21, 2025 11:00 AM To: michlib-l@mcls.org Subject: [Michlib-l] FW: Does anybody know yet? 11th hour change to EST Act about nonprofits? CAUTION: This is an External email. Please send suspicious emails to [ mailto:abuse@michigan.gov | abuse@michigan.gov ] From: John Clexton Sent: Friday, February 21, 2025 10:47 AM To: Michigan Library Association < [ mailto:mla@milibraries.org | mla@milibraries.org ] > Cc: Membiela, Clare (MDE) < [ mailto:MembielaC@michigan.gov | MembielaC@michigan.gov ] > Subject: Does anybody know yet? 11th hour change to EST Act about nonprofits? This morning, our finance team received a memo containing the following statement: The definition of "employer" expressly exempts a "nonprofit agency" from its definition. Beyond this, the legislation does not provide exemptions for any businesses or organizations (though see “accrual” for new rules regarding small businesses). Does this exemption refer to certified nonprofits or nonprofits categorized by tax code? Does our financial people have it wrong? I would appreciate any clarification on this matter. Thank you, John John Clexton 2025 ARSL President Library Director Gladwin County District Library [ mailto:jclexton@gcdl.org | jclexton@gcdl.org ] 989-347-1007 _______________________________________________ Michlib-l mailing list Michlib-l@mcls.org https://urldefense.proofpoint.com/v2/url?u=https-3A__mail3.mcls.org_mailman_listinfo_michlib-2Dl&d=DwICAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=K413SsyzrwoC0g1YI7TqcNA-Yj77Bh77YPMViizKqOs&e=
I am working on information now. The bill is linked below so everyone can read it while I work on getting information out. Section 2(l) (definition) and sections 3(1) and 3(2) of the bill address small employers. Small employers are NOT exempted, but have been given until October 1, 2025 to comply with the act. https://www.legislature.mi.gov/documents/2025-2026/billenrolled/House/pdf/20... As always, please consult your library's attorney with questions involving employee benefits and policies. Thanks! Clare Clare D. Membiela, MLS, J.D. Library Law Consultant Library of Michigan MembielaC@michigan.gov<mailto:MembielaC@michigan.gov> 517-335-8132 The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. "the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge." Griswold v. Connecticut, 381 U.S. 479, 482 (1965). Michigan's Top 10 Strategic Education Plan<https://www.michigan.gov/mde/resources/michigan-top-10-strategic-education-plan> provides focused direction to drive educational achievement in support of all learners. [Michigan's Top 10 Strategic Education Plan] [Michigan.gov/Vote logo Description automatically generated]<https://mvic.sos.state.mi.us/> Get personalized voter information on early voting and other topics at Michigan.gov/Vote<https://mvic.sos.state.mi.us/>. From: Teresa Natzke <tnatzke@franklin.lib.mi.us> Sent: Friday, February 21, 2025 12:01 PM To: Membiela, Clare (MDE) <MembielaC@michigan.gov> Cc: John Clexton <jclexton@gcdl.org>; Michlib-l <michlib-l@mcls.org> Subject: Re: [Michlib-l] Does anybody know yet? 11th hour change to EST Act about nonprofits? CAUTION: This is an External email. Please send suspicious emails to abuse@michigan.gov<mailto:abuse@michigan.gov> What about the number of employees? Are 10 or fewer exempt? [cid:image003.png@01DB8459.0282E490] ________________________________ From: "Michlib-l" <michlib-l@mcls.org<mailto:michlib-l@mcls.org>> To: "John Clexton" <jclexton@gcdl.org<mailto:jclexton@gcdl.org>>, "Michlib-l" <michlib-l@mcls.org<mailto:michlib-l@mcls.org>> Sent: Friday, February 21, 2025 11:56:35 AM Subject: Re: [Michlib-l] Does anybody know yet? 11th hour change to EST Act about nonprofits? Hello John: Here is a copy of the enrolled bill - https://www.legislature.mi.gov/documents/2025-2026/billenrolled/House/pdf/2025-HNB-4002.pdf<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.legislature.mi.gov_documents_2025-2D2026_billenrolled_House_pdf_2025-2DHNB-2D4002.pdf&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=FEV6m-36SVDKPjvncF98j7p_UdNXH6ETk3xdTbmXWzw&e=> Here is the legislation's page (with analyses, etc.) https://www.legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4002<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.legislature.mi.gov_Bills_Bill-3FObjectName-3D2025-2DHB-2D4002&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=Y1NEWp0yx1wLlinupY4-QHkY-vJ1AJTA8x2kmsajV1c&e=> It looks like the amendment process cleaned up the language regarding the definition of "Employer." The term "nonprofit agency" was removed from the definition - but that doesn't mean those entities are exempted - the language of the final definition is pretty clear that ALL employers other than US Federal government employees are included: [Graphical user interface, text, application Description automatically generated] Perhaps they were looking at a previous version? Clare Clare D. Membiela, MLS, J.D. Library Law Consultant Library of Michigan MembielaC@michigan.gov<mailto:MembielaC@michigan.gov> 517-335-8132 The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. "the State may not, consistently with the spirit of the First Amendment, contract the spectrum of available knowledge." Griswold v. Connecticut, 381 U.S. 479, 482 (1965). Michigan's Top 10 Strategic Education Plan<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.michigan.gov_mde_resources_michigan-2Dtop-2D10-2Dstrategic-2Deducation-2Dplan&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=cxDkvo5KPx05Fp9a2uk6Lrry2QxOk4Qz9kwjdboIzSU&e=> provides focused direction to drive educational achievement in support of all learners. [Michigan's Top 10 Strategic Education Plan] [Michigan.gov/Vote logo Description automatically generated]<https://urldefense.proofpoint.com/v2/url?u=https-3A__mvic.sos.state.mi.us_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=jAHo9WOYfoh0rKSO_5TbZ4lHtoaD1WzaKCb9U1ngkWw&e=> Get personalized voter information on early voting and other topics at Michigan.gov/Vote<https://urldefense.proofpoint.com/v2/url?u=https-3A__mvic.sos.state.mi.us_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=jAHo9WOYfoh0rKSO_5TbZ4lHtoaD1WzaKCb9U1ngkWw&e=>. From: Michlib-l <michlib-l-bounces@mcls.org<mailto:michlib-l-bounces@mcls.org>> On Behalf Of John Clexton via Michlib-l Sent: Friday, February 21, 2025 11:00 AM To: michlib-l@mcls.org<mailto:michlib-l@mcls.org> Subject: [Michlib-l] FW: Does anybody know yet? 11th hour change to EST Act about nonprofits? CAUTION: This is an External email. Please send suspicious emails to abuse@michigan.gov<mailto:abuse@michigan.gov> From: John Clexton Sent: Friday, February 21, 2025 10:47 AM To: Michigan Library Association <mla@milibraries.org<mailto:mla@milibraries.org>> Cc: Membiela, Clare (MDE) <MembielaC@michigan.gov<mailto:MembielaC@michigan.gov>> Subject: Does anybody know yet? 11th hour change to EST Act about nonprofits? This morning, our finance team received a memo containing the following statement: The definition of "employer" expressly exempts a "nonprofit agency" from its definition. Beyond this, the legislation does not provide exemptions for any businesses or organizations (though see "accrual" for new rules regarding small businesses). Does this exemption refer to certified nonprofits or nonprofits categorized by tax code? Does our financial people have it wrong? I would appreciate any clarification on this matter. Thank you, John John Clexton 2025 ARSL President Library Director Gladwin County District Library jclexton@gcdl.org<mailto:jclexton@gcdl.org> 989-347-1007 [cid:image006.png@01DB8459.0282E490] _______________________________________________ Michlib-l mailing list Michlib-l@mcls.org<mailto:Michlib-l@mcls.org> https://urldefense.proofpoint.com/v2/url?u=https-3A__mail3.mcls.org_mailman_listinfo_michlib-2Dl&d=DwICAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=e6sAxXCJmykY2k1UijXWkmTzAl96Vq907WIJ-Knaxek&m=NBsqoTgQSFdSy0nj8wzdL-HLey-JSYK3RlmF0ozN0vHnZGji1wT-HoxufhIL3-SC&s=K413SsyzrwoC0g1YI7TqcNA-Yj77Bh77YPMViizKqOs&e=
participants (3)
-
John Clexton -
Membiela, Clare (MDE) -
Teresa Natzke