The Affordable Care Act & Your Club
“The Affordable Care Act, in my opinion, is one of the most important issues we have had in a long time. The presentation on this topic at EXPO 2013 is something that every club owner in the U.S. should attend. If ever there was an EXPO attendance must, this is it.”
—Jim St. John, former CEO of Deja Vu/Hustler Clubs Chain,
current President of ACE National
It’s one of the most crucial issues to hit the adult nightclub industry in over a decade. The question is, are you prepared for the ACA implementation in 2014? And what does it mean for YOU? At EXPO 2013, attorney Randy Limbeck of the Jackson Lewis firm, a noted expert on “Obamacare” from the employer’s standpoint, will present a detailed seminar that will answer the questions club owners are asking.
As difficult as it is for many people in this country to do, especially in days like these, let’s put politics aside for just a minute. Whether you believe that the Affordable Care Act (ACA)—aka, “Obamacare”—is a blessing that will save the U.S. health care system or a curse that will completely destroy it is, at least for now, a moot point. As of January 1, 2014, all of those who own businesses that employ 50 or more full-time employees must comply with the ACA or be subject to stiff financial penalties.
In other words, be as mad as you’d like. But all of the kicking and screaming in the world isn’t going to help you and your adult nightclub get prepared to deal with the ACA.
What is going to help club owners get prepared for the ACA? At EXPO 2013, attorney Randy Limbeck of the Jackson Lewis firm—a firm dedicated to representing management exclusively in workplace law with over 700 attorneys in 47 cities—will present an hour-plus seminar addressing all of the pertinent questions related to the ACA as it relates specifically to your club.
Here are some of the vital questions each club owner must ask themselves:
—Are you at risk of non-compliance with the ACA?
—What does it take to reach the 50 full-time-employee threshold?
—What are the risk and penalties for non-compliance?
—What do you need to do NOW to make sure that you make the best possible decision for your business?
These questions and more will be answered by Limbeck, whose seminar is being presented on Thursday, August 22 (11:45 am -1 pm) by the Association of Club Executives and moderated by ACE National’s Mike Ocello, who is also the President of the VCG/PT’s Showclubs chain.
“One of the first things club owners need to know is, 50 full-time employees doesn’t necessarily mean 50 people who work 30 hours a week or more,” Limbeck explains. “If you have, let’s say, two employees who each work 15 hours a week, together they make 30; that counts as one full-time employee.”
Some club owners may feel as if they’re out of the woods if they don’t employ more than 50 full-time or part-time-equivalent staffers, thinking that their “independent contractor” or “non-employee” entertainers don’t factor into this equation. But as Limbeck advises, don’t be so sure.
“One area that I will definitely be discussing is, what are the implications under the ACA for the misclassification of someone who the government determines is an employee,” says Limbeck. “The question isn’t, what do you, the club owner, consider your dancers to be. The question is, what will the government say that they are when they’re examining whether or not your business is ACA compliant? The implications for misclassification could be substantial, including sanctions and financial penalties.”
Does that mean that all entertainers must now be classified as employees? That’s not the case either, as Limbeck suggests.
“If she returns to a certain club once a year for a period of time, or twice a year for a period of time, she could be considered a ‘seasonal employee,’” Limbeck says. “Or if she travels regularly from club to club, she might indeed be able to be classified as an independent contractor.”
As Limbeck notes, his seminar on the ACA—as it specifically relates to adult nightclub owners—will address every pertinent issue and answer virtually every reasonable question related to this very complicated issue. These areas of concentration will include:
—How to determine how many full-time employees you have.
—How to determine whether or not an entertainer may be considered a full-time employee by government standards, as it relates to the ACA.
—What actions must you take to become ACA-compliant by 2014.
—What the penalties and sanctions may be for non-compliance.
—Alternative strategies for dealing with the ACA, including willful non-compliance (weighing potential sanctions and fines versus compliance).
Ocello will also take part in the seminar to ensure that Limbeck stays on point and directs his advice at the specific issues most important to adult nightclub owners.
“We need to be very careful about who presents this information,” says Ocello. “This is one of those times when we must be absolutely sure the person who speaks is a true subject matter expert. Misinformation about this topic can have catastrophic consequences to the industry. Randy Limbeck is one of the few experts on this subject that I know and trust.”
“Our ACE Dallas association hired Randy Limbeck to present on this matter in February,” echoes David Fairchild, CEO of The Men’s Club chain. “He gave a great presentation, kept the meeting engaged, and did Q&A along the way. We encouraged our members to bring their accountants and/or advisors and many did. Our normal monthly meeting attendance is around 15 and we had almost 50 at this meeting.”
No matter what your opinion of the Affordable Care Act, no matter what size of club you own and/or operate, the question isn’t if the federal government is going to examine whether or not your business is ACA-compliant, but when.
“I realize that certain people like to put their head in the sand and hope for the best,” says Limbeck. “But whether they like it or not, club owners need to get educated on the ACA, because 2014 will be here soon enough.”— Dave Manack
About Randy Limbeck
Randal M. Limbeck is a Partner at Jackson Lewis LLP which is dedicated to representing management exclusively in workplace law. Mr. Limbeck has spent more than 25 years specializing in representation of clients in the areas of ERISA, employee benefits, and executive compensation. Mr. Limbeck has represented clients in a broad range of industries and size, including service industries, health care, government, technology, manufacturing, agribusiness, information services, banking and professional practices.
Mr. Limbeck’s employee benefits and executive compensation clients include large, publicly-traded companies and a wide range of professional service organizations, and Mr. Limbeck’s practice involves design, document drafting, employee communications, litigation and assisting clients in dealings with the IRS and Department of Labor.
Best Lawyers in America has included Mr. Limbeck for more than 15 years and named him Omaha’s 2011 Best Employee Benefit Lawyer. Mr. Limbeck is also listed in the Great Plains Super Lawyers and the Chambers USA as a Leader in his Field. Mr. Limbeck is “AV” rated by the Martindale-Hubbell Law Directory.
Mr. Limbeck received his B.S.B.A., cum laude, from Creighton University in 1976, and his J.D., cum laude, from Creighton University in 1978. Mr. Limbeck is also a certified public accountant (inactive).
Randy Limbeck can be reached at firstname.lastname@example.org.