Wednesday, September 7, 2016

Not for Profits and New DOL Overtime Rule

Dana Halvorson


The National Council of Nonprofits has released the results of a national survey of nonprofits with government grants and contracts regarding the new U.S. Department of Labor (DOL) Overtime Rule. The results document is entitled, “The Nonprofit Overtime Implementation Conundrum.” Included in the document, it was noted that “the U.S. Department of Labor recently published its Overtime Final Rule that will require most employers, including nonprofits, to pay overtime to all employees earning less than $47,476 per year, more than double the current threshold of $23,660. The new salary level threshold will trigger overtime pay requirements regardless of whether individual employees are considered salaried (exempt) or hourly (nonexempt).

The new overtime rules take effect on December 1, 2016. As employers of ten percent of the American workforce, the rule will have a significant impact on many nonprofits, their employees, and the people they serve. The nonprofit sector earns almost one third of its combined revenues from government grants and contracts. The confluence of these two issues led the National Council of Nonprofits (Council of Nonprofits) to put a nationwide survey in the field in May 2016.” You can read the full survey results here

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