[Congressional Record Volume 156, Number 90 (Wednesday, June 16, 2010)]
[Extensions of Remarks]
[Page E1118]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     INTRODUCTION OF THE VOLUNTEER FIREFIGHTER FAIRNESS ACT OF 2010

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                             HON. DAVID WU

                               of oregon

                    in the house of representatives

                        Wednesday, June 16, 2010

  Mr. WU. Madam Speaker, I rise to let my colleagues know that today I 
introduced the Volunteer Firefighter Fairness Act.
  This bill would clarify for volunteer fire departments, volunteer 
firefighters and emergency personnel, and the Internal Revenue Service 
that volunteers are not employees of the fire departments where they 
serve.
  According to the National Fire Protection Association, volunteers 
comprise approximately 72 percent of our nation's fire and emergency 
services. Although volunteers make up the majority of firefighters 
nationwide, we are experiencing an overall decline in the number of 
volunteer personnel. This is due to increased emergency call volumes, 
the time demands of ongoing training, and the struggle many Americans 
face trying to balancing family and work obligations.
  To help recruit and retain volunteer firefighters and other volunteer 
first responders, some states and local governments offer nominal 
payments or benefits, such as covering expenses for uniforms.
  Historically, fire departments have used the IRS Form 1099 to report 
these benefits and nominal payments for their volunteers. However, 
recently many volunteer fire departments have been told by local or 
regional IRS offices that they must the Form W-2, instead of the 1099, 
to report payments and benefits. In Oregon, a volunteer fire department 
was even hit with a $9,900 fine for using a Form 1099 instead of a Form 
W-2.
  The bill I am introducing today will clarify the law to ensure that 
fire departments will be able to use Form 1099 to report any minimal 
pay or benefits for volunteer first responders. I am pleased to report 
that this bill has the full support of the International Fire Chiefs 
Association.
  Finally, Madam Speaker, I would like to clarify one point about who 
the bill would cover. This legislation is designed to specifically 
cover volunteer firefighters and volunteer emergency personnel. The 
practice of providing volunteer firefighters and emergency personnel 
with reimbursement, reasonable benefits, and nominal fees for their 
services is allowed under both the IRS Code and the Fair Labor 
Standards Act. The U.S. Department of Labor's Wage and Hour Division 
ruled on August 7, 2006, that ``generally an amount not exceeding 20 
percent of the total compensation that the employer would pay to employ 
a full-time firefighter for performing comparable services would be 
deemed nominal.'' Since both the IRS Code and the FLSA use the term 
``nominal fee'' as an allowable form of compensation for volunteer 
firefighters, I urge the IRS to use the U.S. Department of Labor's 
ruling in drafting any regulations to implement this legislation or 
define the term ``nominal fee'' for volunteer firefighter compensation.

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