U.S. Department of Labor Releases New Overtime Rules
This morning, the U.S. Department of Labor released the new overtime laws with details on how those laws may affect nonprofit organizations.
We have outlined some information below as well as some training opportunities available.
The clearest information from the U.S. Department of Labor regarding guidance for nonprofit organization can be found
here.
INFORMATION ON THE NEW RULES
The final rule will:
Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers.
Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.
Strengthen overtime protections for salaried workers already entitled to overtime.
Provide greater clarity for workers and employers.
The final rule will become effective on December 1, 2016, giving employers more than six months to prepare. The final rule does not make any changes to the duties test for executive, administrative and professional employees.
From the National Council for Nonprofits:
"The regulations will go into effect on December 1, 2016. Most employees earning less than $47,500 per year will be entitled to overtime compensation, regardless of whether they are currently classified as executive, administrative, or professional (white-collar) workers. The final rule applies to employers in all sectors, but in an effort to address longstanding confusion about how the Fair Labor Standards Act (FLSA) and the overtime regulations apply to nonprofit employers and employees, the Department of Labor (DOL) also published a special
overview and
guidance for nonprofit organizations."
