Proposed Federal Overtime Rules to Affect Nonprofits 

The US Dept. of Labor has the attention of every sector from its proposed overhaul of regulations on the overtime pay requirements of employers. 

 

Capitol Building

The U.S. Department of Labor has proposed new regulations designed to expand overtime protections for millions of workers employed by nonprofits, for-profits, and governments. 

 

While NYCON believes that updates to overtime rules are needed, and that for-profit businesses will adjust in due course, there will likely be no additional resources allocated to the nonprofit community to assist with the administrative costs they are already straining to contain. 

 

Both public and private funders will need to be receptive to supporting increased costs to nonprofits associated with the new regulations.
 

Key Highlight: 
 

Membership Benefits Spotlight!NYCON feels that the most significant change would be the increase of the 'white collar' salary threshold [EAP], below which overtime work must be compensated, from $23,660 to $50,440 in 2016.  There will  be higher pay costs for employers due to a capturing of hours worked beyond 40, and higher administrative costs for time-card processing.

 

The proposed rules admit that "there may also be transfers of hours and income from some workers to other workers." 

 

Key Exemptions: 

  • The rule will not apply employers with non-interstate commerce "business" revenue under $500,000 a year; thus nonprofit charitable activities will not accrue toward this figure. 
  • The rule still does not apply to certain trained professionals, such as  teachers, academic administrative personnel, physicians, lawyers, and judges [29 CFR ยง541].

NOTICE: there are many ambiguous aspects of the proposed rule, and hopefully the final form of the rule will clarify much. Regardless, NYCON will be ready to assist with compliance under the final rule.

 

Learn More:
 To learn more about the proposed changes to the federal overtime rules and how they may affect the nonprofit community, please click here to be directed to the National Council of Nonprofits website.
What Can Nonprofits Do About the Proposed Changes?

The effect of the proposed overtime regulations, if implemented, would vary widely among nonprofit organizations. 

 

The National Council of Nonprofits is facilitating a nonprofit-only sign on letter to DOL asking for an extension of the comment period so nonprofits can have a better opportunity to research the impacts.  

 

NYCON is encouraging individual nonprofits take the time to review the regulations and 
offer comments to the Department of Labor prior to the due date of September 4, 2015.