Overtime Rules Near Completion

April 27, 2016

The U.S. Department of Labor (DOL) has sent new rules for overtime compensation to the White House for final review.  The content of the final rules is not yet public, so it is unclear how the DOL might have responded to the more than 270,000 comments received in response to the original proposed rules,  which would require employers—including nonprofit organizations—to pay time-and-a-half wages to salaried employees earning up to $50,440 annually when they work more than 40 hours in a given week. The plan would more than double the current overtime-exemption threshold of $23,660. Last fall, Independent Sector (a national coalition of nonprofit and philanthropic organizations in which the League is an active participant), filed comments in response to the DOL proposal, expressing concerns over the cost of implementing the proposed rules, while also supporting the general impulse to support a "living wage." Further background is available from the Department of Labor, and a DOL summary outlines current exemptions. To help nonprofits understand this complicated policy area, Independent Sector has prepared an Overtime Resource Page, and the nonprofit sector is considering further guidance that can help employers understand the current and changing rules for compliance. The League will keep you informed when the new rules are finalized.