Overtime Policy Developments and Resources
(Updated September 20, 2023)
The U.S. Department of Labor (DoL) is proposing changes to overtime compensation requirements and is inviting comments on the potential new rules by November 7, 2023. Read the proposed rules and a related resource on Frequently Asked Questions.
As a member of the National Council of Nonprofits and Independent Sector, the League is partnering with the wider nonprofit sector to respond to the proposals. Orchestras are encouraged to contact the League’s Washington, D.C. advocacy team to share any responses to the proposal, and orchestras may also directly comment via the U.S. Federal Register.
New rules would adjust the salary level test and will not go into effect until after a period of public comment and analysis. (Note that some states already have salary level requirements that exceed current U.S. DoL thresholds.) The Department of Labor proposes:
- Raising the standard minimum level for salaried workers from $684 per week ($35,568 per year) to what amounts to the 35th percentile of earnings of full-time salaried workers in the lowest-wage Census Region (currently the South), which would be $1,059 per week ($55,068 annually) based on current data.
- Raising the standard salary minimum for highly compensated employees from $107,432 a year to the annualized weekly earnings of the 85th percentile of full-time salaried workers nationally, or $143,988 per year.
- Implementing a mechanism for automatically revising these two minimum earnings thresholds every three years using updated wage data.
A complete analysis of the proposed rule is available from the National Council of Nonprofits (NCN). The team at NCN “encourages all nonprofits to conduct a mission-based analysis of these proposed regulations. That means answering questions about how the proposed increase in the minimum salary levels would affect operations, resources, and staffing, as well as what impact the draft regulations would have on persons relying on the services and the mission of the nonprofit, all while factoring in what is equitable to the nonprofit workforce.”
Is your orchestra in compliance with overtime rules under the 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.
Previous changes to the overtime rules took effect on January 1, 2020, and increased the number of workers eligible for overtime compensation. In addition to raising the standard salary level threshold to $684 per week ($35,568 for a full-year worker), the DOL’s final rule allowed employers to use nondiscretionary bonuses and incentive payments that are paid at least annually to satisfy up to 10% of the standard salary level. The total annual compensation level for “highly compensated employees” (HCE) also increased from $100,000 to $107,432 per year, while the Department did not make any changes to the standard or HCE duties test.
We will keep adding resources to this page.
In advance of the 2020 rules taking effect, the League filed comments (PDF), along with our partners at the National Council of Nonprofits and Independent Sector, asking for a phased-in approach to changes, clear guidance for nonprofits, and additional opportunities to provide input when more specific regulatory changes are proposed.
Please contact Heather Noonan, League Vice President for Advocacy, with related questions.