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(Updated July 1, 2024)

The U.S. Department of Labor (DoL) finalized changes to overtime compensation requirements, described in the final rules, released on April 23, 2024.

As an active member of the National Council of Nonprofits and Independent Sector, the League has been partnering with the wider nonprofit sector to bring visibility to the new rules as initially proposed, request a phased in approach to new requirements, and share information about the final policies.

A reminder: As your orchestra ensures compliance with the federal Fair Labor Standards Act, it is also important to understand your state’s overtime rules, as whichever threshold is most generous to workers is what must be implemented by employers. Some states already have salary level requirements that exceed U.S. DoL thresholds.

The new federal rules adjust the salary level test for overtime compensation, with three phases of implementation beginning on July 1, 2024, increasing thresholds again on January 1, 2025, and raising them again on July 1, 2025 and every three years thereafter.

While the rule is facing lawsuits aimed at overturning it, orchestras should be prepared for the increased costs of full implementation. On June 28, a federal judge in Texas temporarily blocked implementation of the new overtime compensation requirements while a court case is considered, but only for employees of the state of Texas. A lawsuit filed by the Texas attorney general takes issue with basing eligibility for overtime on wages rather than duties workers perform. In a previous 2017 ruling that struck down an Obama administration overtime pay rule, the very same judge stated that while DoL does have the ability to use a salary test, eligibility for overtime pay must be based on a combination of workers’ duties and wages. Another lawsuit also filed in Texas claims the overtime rule improperly includes many workers with management duties who should be exempt for overtime pay. A third lawsuit filed by a coalition of businesses alleges that compliance would be too costly for many businesses. The League will keep orchestras informed of any further court action.

We will keep adding resources to this page.

Questions?

Please contact Heather Noonan, League Vice President for Advocacy, with related questions.

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