On May 18, President Obama and Secretary Perez of the Department of Labor (DOL) announced the publication of a final rule updating the overtime regulations. The Final Rule increases the salary threshold for eligibility of overtime compensation from $455 to $913 per week ($47,476 annually for a full-year worker), and does not include an exemption for nonprofits. This rule will go into effect on December 1, 2016—allowing employers six months to prepare for implementation.
To help members navigate the new DOL Overtime Rule, the Council’s Legal Team is hosting an Ask the Expert chat on the Philanthropy Exchange June 20-25, 2016. Throughout the week the Legal Team will be online and answering your questions regarding DOL's final rule updating the overtime regulations.
Items to consider:
- Does your foundation have salaried staff that fall below the $913/ week ($47,476 per year) threshold?
- Can bonuses and incentive payments be included to satisfy the new standard salary level?
- How does this rule effect highly compensated employees?
- Does your organization meet one of two types of coverage (1) businesses or similar entities (“enterprise coverage”) or (2) individuals (“individual coverage”) that entitle employees of non-profits to FLSA protections?
- How will the new DOL Overtime Rule impact nonprofits you work with?
- Will this change how you manage operating grants?
The Council has been closely tracking this issue since last summer to best understand how this rule could impact you and your organization. For a full analysis, including implementation options, of the final rule check out our website.
To participate in the Ask the Expert login to the Philanthropy Exchange using your email and password for the Council’s website, click on “Communities" in the tool bar and select “Open Exchange.” You can view the previous questions asked under “Latest Discussion Posts” or ask your own question by clicking “Post Message.”
Council members looking to learn more about how this rule change will affect their organizations are encouraged to contact our Legal Affairs Team at email@example.com with any questions.