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New Overtime Rules Will Impact Nonprofits

From the folks at Pro Bono Partnership: Last year, the U.S. Department of Labor proposed raising the minimum salary requireovertimed for the "white collar" overtime exemptions (executive, administrative, and professional) from $455 per week ($23,600 per year) to $921 per week ($47,892 per year), with automatic annual upward adjustments. These regulations are likely to be adopted in the next few months. If these regulations take effect, many employees who are currently classified as salaried exempt will no longer pass the salary test and must be paid overtime for hours worked over 40 in a work week. The new regulations will significantly impact the nonprofit world, where salaries in the $24,000 - $48,000 range are common. Even nonprofit executive directors paid less than $47,892 will be eligible for overtime. Nonprofits should start planning now to meet the upcoming budgetary challenges. A new article can be found here to guide nonprofits through these changes.