Looking to increase overtime protection for millions of white-collar employees in the nonprofit, not-for-profit and government sectors, the U.S. Department of Labor recently proposed new overtime regulations.
The Department’s proposed overtime reform would accomplish the following 3 things:
- Raise the standard minimum salary level for salaried employees from $23,660 to $50,400 per year—exempting them from overtime pay should they exceed a 40-hour work week.
- Raise the standard minimum salary level for “highly compensated” workers from $100,000 to more than $120,000 annually.
- Construct a device that will automatically update the two minimum salary levels on an annual basis to accommodate future inflation.
Should they get approved, these drafted regulations will go into effect in 2016—but not before months of public debate and analysis.
Bringing these minimum salary levels up to the 40th and 90th percentiles will greatly affect the nonprofit community. Since these percentage increases are based on the typical weekly earnings of full-time salaried workers from the for-profit and public sectors, the new regulations might lead to a higher cost for nonprofits.
Because the proposed overtime regulations will affect every nonprofit differently, depending on their location and size, it’s imperative that your nonprofit take the time to analyze how these potential overtime changes might alter your organization’s current services, staffing, and day-to-day operations.
As a mission-driven organization, your nonprofit has a responsibility to both your employees and the people you serve. Submitting questions to the Department of Labor can help you gain a greater sense of understanding regarding these drafted regulations and shed light on how the law will affect the nonprofit sector as a whole.
Make sure your questions are answered and your nonprofit’s voice is heard. Comment here by September 4, 2015.