May 20, 2016

DOL's New Salary Rule on Overtime Will Impact Many Nonprofits

As you’ve likely heard, the U.S. Department of Labor (DOL) released its final regulations on May 18, 2016, changing the overtime exemptions under the Fair Labor Standards Act (FLSA). In short, most salaried employees currently exempt from being paid overtime will lose their exempt status and become overtime eligible effective December 1, 2016, if they are paid a salary less than $913 per week ($47,476 annually).

The salary level threshold was substantially increased, and we know that it will impact many nonprofit organizations. Therefore, we thought it would be helpful for you to see the legal update — “DOL Issues New Salary Rule: Now What?” — prepared by Faegre Baker Daniels colleagues in our labor and employment law group, which offers suggestions about how to respond. In addition, the DOL published a fact sheet that is specific to nonprofit organizations, which can be found at Overtime Final Rule and the Non-Profit Sector.

If we can assist you as you consider how this rule change affects your nonprofit organization, contact a member of Faegre Baker Daniels’ nonprofit organizations team.

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