Mortuary Law - Ch 10-12 - Gilligan/Stueve

Contracts entered into between members of the public and funeral homes to provide for funeral goods and services in the future upon the death of the contract beneficiary:

Preneed Funeral Contract

Preneed contracts can be either…

Fixed price contracts or non guaranteed contracts

What happens if the preneed contract is a fixed price contract?

The price of the funeral that will be provided in the future will not exceed the amount of funds paid on the contract plus any accruals thereon.

What happens if the preneed contract is a nonguaranteed contract?

The funeral home is only agreeing that amounts paid on the contract, plus accruals, will be applied toward the price of the future funeral.

If the price of the funeral exceeds the amounts set aside to pay for it, what happens?

The purchaser or decedent’s estate will have to make up the balance.

What is a issue with preneed contracts?

Revocability

Preneeds contracts which are revocable can be revoked by…

The purchaser

When can preneed contracts be revoked by the purchaser?

Any time prior to the death of the beneficiary.

The amount that is returned (If there were payments made to the contract) is often determined by who?

The state.

Although the trend of preneed is toward requiring an amount less than…

100% of the preneed funds and interest thereon to be trusted.

The laws usually require funds for preneed to be deposited in:

Insured banks, trust companies, or savings and loan accounts.

Life insurance which is used to fund a separate preneed contract:

Funeral Contract

What is the first primary advantage of funeral insurance?

It is tax free.

What is the secondary advantage of funeral insurance?

The receipt by the funeral home of upfront income to cover the cost of its preneed marketing program.

What exclusion does current law provide for preneed contracts?

Burial Exclusion

How does the burial exclusion get applied?

If the applicant owns the gravesite, casket, vault

In addition to the burial space exclusion, there is a burial fund exclusion which can exclude up to…

$1500

SSI stands for:

Social Security Income

This regulation mandates that all door-to-door sellers must notify their customers that they have the right to cancel the door-to-door transaction at any time prior to midnight of the third business day after the date of the transaction:

The Cooling Off Rule

A sale of consumer goods or services exceeding $25.00 in which the seller personally solicits the sale and the sale is made at a place other than the seller’s place of business:

door to door sale

Any goods or services purchased, leased or rented primarily for personal, family, or household purposes:

Consumer goods and services

When are door to door sales exempt from the preneed contract?

If the sale sales are made pursuant to prior negotiations.

FLSA -

The Fair Labor Standards Act

What three areas of employment law does the FLSA cover?

Minimum wage, overtime compensation, equal pay

Who administers and enforces the FLSA?

The wage and hour division of the Department of Labor

With regard to civil actions, a court may award unpaid wages and overtime pay for a back pay period of up to…

2 years from the date the complaint is filed.

In a case of willful violation, the back pay period can extend to…

3 years.

What type of damages can a court award for back pay?

Liquidated

Not all employees are covered by the Act. Currently, an enterprise is fully covered if its gross annual sales exceed…

$500,000

Funeral homes that make below $500,000, they are still subject to overtime pay, child labor restrictions, and recordkeeping requirements if…

they grossed $362,000 or more in any year prior to 1990.

For funeral home, all proceeds from cash advances are included as part of…

gross receipts

What kind of employees are generally protected by the overtime and minimum wage requirements of the FLSA?

Full Time Employees

What are the 5 white collar exemptions?

Executive Employees

Administrators

Professionals

Commissioned Outside Salesmen

Computer Employees

How does one fall under the executive employee category?

If their duty is primarily management of the enterprise in which he is employed, or if he manages a subdivision of the enterprise.

What is example of a executive employee in a funeral home?

A general manager or a branch manager

How does an employee fall under the administrator exemption?

If his primary duty requires the exercise of discretion and independent judgment and performs office work.

What kind of employee is an example of an administrator?

An office manager or a personnel director

How is an employee considered a professional?

Primary duties consist of the performance artistic/educational matters.

Advanced knowledge is obtained by a prolonged course of education.

The work requires consistent exercise of discretion and judgement.

Work is predominantly intellectual.

What is a Commissioned Outside Salesman?

An employee who customarily and regularly works away from employer’s place of business while making sales.

What is a computer employee?

People who are employed to work with computers

The Rutlin decision is only used in what 4 states?

Michigan, Ohio, Tennessee, and Kentucky

What two states require 4 years of mortuary school?

Ohio and Minnesota

Records of employees should be kept for how long?

3 years

How long are payroll records kept?

6 years

A regular recurring period of 168 hours and 7 consecutive 24 periods:

Workweek

How is an employee’s regular rate of pay determined?

Meals and Lodging

Bonuses

Expenses

Profit Sharing

Vacation Pay

How many employees does a funeral home need to fall under the coverage of the ADA?

15 or more

In order to be a qualified individual with a disability, the employee must be able to…

perform the essential functions of a job or without reasonable accommodations.

EEOC

Equal Employment Opportunity Commission

Any physical or mental impairment that substantially limits one or more life activity:

Disability

When did Congress enact American with Disability Amendment Act?

2008

prohibits discriminatory practices in employment based on race, color, religion, sex, or national origin:

Title VII of the Civil Rights Act of 1964

ADEA

Age Discrimination in Employment Act

The coverage of the ADEA applies to businesses with…

20 or more employees.

The EEOC carries out its mission through a 2-step process:

Mediation and enforcement

The EEOC requires all employers to maintain clean paper trials for at least…

6 months

The EEOC recommends that records should be kept for…

3 years