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RobertL6 (New Hampshire)
Posts: 2
Posted:
An association member wants to be paid for lost wages because he had taken a day off from work to attend a training session for the association ? Is this considered lost wages? Or is it consider something else?
HaroldS (Arizona)
Posts: 906
Posted:
Definitely lost wages for him, but unless it was promised, I don't think he should expect it. Why dind't he take a vacation or personal day? Harold
RobertR1 (South Carolina)
Posts: 5,164
Posted:
RobertL, If your association had some sort of agreement with an owner that he would be re-imbursed for travel expenses and the cost of the course,unless it is writing signed by the president, he can just consider his attendence to what-ever a learning experience and be thankful if he learns something. If the president would sign for this kind of expenditure, he should be made to justify it, and in an HOA there is no justification. I just hope this is not a practice that happens all the time. Stop it now, if it is, and if possible get your money back. Most documents strictly forbid owners being paid for associations business. The only exception I know of is the board can approve travels expenses for members of the board it is an extraordinary reason, certainly not to attend regular meetings. All boards should have teleconference capabilities anyway. Our's does but the board won't notify owners ahead of time for them to be able to use this modern capability. Our board is and has been making this huge mistake having regular Board Meetings closed.

Any owners attendence to attend to any association business is a benefit to him as much as it should be to his fellow owners. Do not, even come close to trying to do this.
MicheleD (Kentucky)
Posts: 4,491
Posted:
That's a pretty bizarre scenario to begin with.

Just out of curiosity, what sort of "training" would an "association member" (not a board member or officer) be REQUIRED to attend that would require him to take a day off work?

I can't think of a single "training" session of any sort that our association members would need to take on behalf of the association -- or am I overlooking something obvious?
BradP (Kansas)
Posts: 2,640
Posted:
Robert:

He is a volunteer, he volunteered his time. He wasn't required to do this. He didn't have to volunteer. Don't open that can of worms, because then you will have people saying they had to take off of work to attend a meeting, etc.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
BradP,

Meaning what?

Owners volunteer to uphold the documents and work for the betterment of the commumity when they buy the property, so what's the issue about opening up a can of worms? Who are the people that are going to say to who; "I have to take the day off work so I can attend a meeting, etc?"
Please explain. Of course, we all volunteer our time, that's the point, all should, they just don't.

I am sure I am missing something you are trying to tell me.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Michele,
It is a bizarre situation as described, I agree.

RobertL6 (New Hampshire)
Posts: 2
Posted:
We maintain our own wells and 2 people have to be licensed and require a 5 hr training session per year. When they go to a training session they submitted for lost wages. I have always thought that if they take a day off from work and submitted for a vacation day to their employee and submitted to our association for lost wages that would be double dipping, and not lost wages but wages, and should have to show proof that their employer did not pay them for that day by means of sick time or vacation time.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
RobertL6,
First, lets get this said and done. We, responding to your post, are just giving opinions, and hopefully the more information we have to base this opinions on, the better we can respond.

There is a huge gap in your information first provided than what you are suggesting now. It makes a difference.

Apparently, your association is acting as a public utility, providing water to a specific group of people. I have no idea how your state views this, or your county or if there are provisions in your documents. You are charged with responsibility to maintain this system as required? I take it that somehow your association is, and would believe along with their actions, another is liability. I don't know how this is handled, and also suggest I am not telling you how to run your business. Strong reaction to what I think I believe I know is :
Answer to your question about reimbursing owners for anything, whether it be work or training or lost wages or travel is avoid this complication and LIABILITY if at all possible. If you feel you must, detailed receipts, authorization by the board to spend the money, a detailed reason to spend the money..........at this point in your situation, you are placing all your members under the gun to get sued big time. You have to admit cupability, not a good thing in any case. Not only is your board charged with watching the store, they are equally charged with justifing their decisions.
Our documents would not allow any part of this kind of arrangement. I suggest you re-think what you have got yourselve into.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Our HOA also has a member of our Association who is licensed by the State and has been required to attend meetings, conferences, file health dept. paperwork, oversee all the water dept., equipment repair, etc., etc.

She also had to earn her certification (study a course, be tested, etc.) We consider her a trained specialist. We pay her by the hour for her work. If we had to hire from outside sources, it would be much more!

We don't consider this a "volunteer" job and yes, she has been paid for attending training sessions, per diem, at a rate set by the board.

If this is a "vital" person for your water system, shame on the Board for not talking about compensation BEFORE he went.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Susan,
Is she bonded and idemnified under your insurance policies?

I understand she might do this cheaper and maybe do a better job. Does she have a company? She may be certified to do the work but maybe only under a Professional Company.

I am not trying to tell you what to do and it apparently works for you and that is great. Would not work here. We have owners that offer professional opinions, but they don't charge us for this nor are they liable, the Board is. Does anyone have a lawyer that serves as the paid consultant to the board, and is an owner? How's that working for you?
MicheleD (Kentucky)
Posts: 4,491
Posted:
Susan:

I have to say I agree with you on the above post.

It should have been agreed to regarding the compensation, if any, for the person's time attending the requisite training for the work he is stepping forward to provide.

If our board were addressing this, I think we would approach as you mention, as a per diem and NOT reimbursement for "lost wages." "Lost wages" would vary considerably from one person to the next. It would make sense that we would establish a set per diem and if the incumbent felt that amount was too low, then he or she could decline the position.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Yes, she is bonded and under our indemnification policy.
Yes, she has her own company. She is one of few certified people in our entire county!

By the way, it is NOT illegal or unusual to hire members, even Board members. As long as the bidding process is fulfilled, members can bid on jobs that need to be done, as well as outsiders. We hold "blind" bids (to hide the names of bidders), require references, insurance and that the bidders be professional companies.

The importaint thing is to never appear that the Board is creating "Work" for itself, or indivudual members will "self-benefit."

For example, I know of a printer who wanted to sit on Boards because he thought he would get the organization's printing contracts. He was surprised at the bidding requirements, had to abstain from voting on contracts, and lost out. He was wrong to join a Board because he thought it would benefit him.

Of course, the indivudual bylaws and other documents supercede any of the above.

RogerB (Colorado)
Posts: 5,067
Posted:
Susan, the member is acting as an independent contractor and should be paid in accordance with the bid you intimated she provided. There is no reimbursement or pay to take off work since this is her professional company.
BradP (Kansas)
Posts: 2,640
Posted:
Quote:
Posted By RobertR1 on 11/22/2007 10:29 PM
BradP,

Meaning what?

Owners volunteer to uphold the documents and work for the betterment of the commumity when they buy the property, so what's the issue about opening up a can of worms? Who are the people that are going to say to who; "I have to take the day off work so I can attend a meeting, etc?"
Please explain. Of course, we all volunteer our time, that's the point, all should, they just don't.

I am sure I am missing something you are trying to tell me.

Robert:

My point was that this member of the association is a volunteer, unless there is more information than what was contained in the original post no one required this person to do this. Therefore his claim of lost wages is bogus because he did it on his own. People work all kinds of hours, I often work in the evenings. If I am a member of our BOD and a meeting is scheduled at night can I claim lost wages? We have had many BOD members that have had to choose between work and our meetings. That is what I meant by a can of worms, if you start then you can expect more to come.

This person probably took vacation from work to attend this training session so in essence they would be double dipping. They are a volunteer.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
BradP,
I agree.

I wonder what happens to all those worms that are in the can when we let them out?

I suppose we can say all members are volunteers since they volenteered to buy property wherever. But as you point out it works pretty well most of the time and the work to do does not suffer.
SusanW1 (Michigan)
Posts: 5,202
Posted:
Sorry guys - but I believe that ANY time the Board sends a member to represent them at an organized, educational function, where there is training for a specific task that benefits the organization, that member should be reimbursed ALL costs or given a per diem.

BradP (Kansas)
Posts: 2,640
Posted:
Susan:

I agree that they should be reimbursed costs for training programs if the board approves in advance. I DO NOT agree that they should be reimbursed for lost wages. If money is that tight or they don't have vacation they don't have to go.
BarbaraM7 (Virginia)
Posts: 86
Posted:
What is a Board Member due to there availablity is asked to do odd jobs around the Common Area when no one in the area will take on the job, or knows something about trimming trees? Should they be allowed to do the work? And can they be reimbursed by the Association? It this a conflict of interest?
BradP (Kansas)
Posts: 2,640
Posted:
Barbara:

good question, if the person is qualified for the work and went through the procedure established by the board to get the work then I don't see a conflict of interest and the person should be compensated fair market value for the work they have performed if they so chose to take it. The HOA needs to make sure the person is properly licensed (if applicable) and have their own insurance and an independent contractor contract should be drawn up between the person and the HOA. Sometimes it is tempting to cut corners, especially if all you need is one small tree trimmed that will take 5 minutes. But there is a need to be careful, if they get hurt cutting the tree it could spell trouble.
RobertR1 (South Carolina)
Posts: 5,164
Posted:
Brad,
Our doc don't allow it. Have we done it? Sure. It can get sticky. Suppose you have two owners that feel qualified to do the job and the Board, in their widsom, considers only one is qualified?

Do you pay your lawyer or Judge owners for advice they offer?

In our place if you ask most owners to do something they just don't volunteer. A two edged sword I suppose. I think a very beneficial action is to have a landscape committee made up of owners willing to get their hands dirty, save a lot of money that way, if the manager gives them free hand and the Board give them some money, and this committee should be empowered to give orders and talk contract with any outside landscapers. In other words, manage a budget.
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By RogerB on 11/23/2007 8:28 AM
Susan, the member is acting as an independent contractor and should be paid in accordance with the bid you intimated she provided. There is no reimbursement or pay to take off work since this is her professional company.

I agree.

What happens when association funds are used to train a volunteer and then the volunteer quits volunteering or moves away? It's money down the drain.

If someone is willing to volunteer and already knows how to do the job, is certified, etc., that's fine except possibly for insurance and liability issues.

In many cases, it's better to hire professionals and avoid the issues.

Ron
SC
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By RobertL6 on 11/23/2007 3:51 AM
We maintain our own wells and 2 people have to be licensed and require a 5 hr training session per year. When they go to a training session they submitted for lost wages. I have always thought that if they take a day off from work and submitted for a vacation day to their employee and submitted to our association for lost wages that would be double dipping, and not lost wages but wages, and should have to show proof that their employer did not pay them for that day by means of sick time or vacation time.

I'm not sure which side of this issue you are on, but an employee's vacation time ie earned time so it would not be "double dipping" to be paid for doing work for someone else during this time.

I believe what your association is doing is a bad idea. You (they) would be far better off having the wells maintained by licensed, insured professionals. There would be no issues on "training session" pay, no licensing issues, all the association has to do is bid the services and pay the winning bidder. When you divide the cost among the homeowners, it's not that much.

Ron
SC
RobertR1 (South Carolina)
Posts: 5,164
Posted:
If, in your association, you have a group of owners that serve on committees, and some spend considerable time and energy trying to a good job, not to mention the reports they make to the board and any accounting they have to do for the expenditure of funds. Done right, it is no small job and can get quite involved.

Do we pay these owners, do we pay the Board? No. Why not? It would create a conflict of interest, whether you paid them under a contract or gave them cash.I am sure all board and managers cross the line is special circumstances, all well and good. But they have no agreement other than the manager saying, for instance;
"Hey, owner # 643, you live in Columbia and there is a store up there that sells this particular colored paint we need, here is the information, pick me up three gallons and bring it down the next time you come." You get the paint, give him a check and all is over.

Now, if you hire an owner under a contract and suppose he is to plant flowers around all mail boxes. He, as an owner don't think he has enough flowers around his mailbax, so he goes out and buys triple the amount he put in. So, people complain and he shows them a receipt for the special flowers he bought. Think this will stop the noise? Not in a million years.
A "Conflict of imterest". in addition to establishing the fact also refers to the APPEARANCE of conflict of interest.
RonaldW (South Carolina)
Posts: 901
Posted:
Quote:
Posted By RobertR1 on 11/24/2007 7:34 AM
...................

Now, if you hire an owner under a contract and suppose he is to plant flowers around all mail boxes. He, as an owner don't think he has enough flowers around his mailbax, so he goes out and buys triple the amount he put in. So, people complain and he shows them a receipt for the special flowers he bought. Think this will stop the noise? Not in a million years.
A "Conflict of imterest". in addition to establishing the fact also refers to the APPEARANCE of conflict of interest.

I recently "refurbushed" my wooden mailbox post. Tightened the arm, filled the cracks caused by weathering, primed and repainted it with the approved color. My neighbor saw what I did and suggested that I go around the neighborhood charging people $10.00 to do theirs.

Notwithstanding the fact that I think my work was worth far more than $10.00, wouldn't it be a conflict of interest when I am in a position to write people letters requiring that they paint their mailbox post and then offer my services (for profit) to do so?

Once we put ourselves in a position to spend other people's money, we must be very careful how we do it. We sometimes need to hold ourselves to a higher standard.

Ron
SC
RobertR1 (South Carolina)
Posts: 5,164
Posted:
$10.00 to refurbish and paint a mail box. I don't know who asked you that but they better not come down here. They are getting $25.00 plus to change a light bulb. You would be surprised to know what some companies charge to manage a rental unit, plus taking up to 40% off the top of the rental fee.

$100 plus to have someone come look at your heat pump.

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