New OT Rule could be Taxing on Non Profits

Aug. 7, 2016: (Crain’s Cleveland Business): Though nonprofits morally support an updated federal policy that will extend overtime protections to 4.2 million workers, many face operational anxiety trying to meet the requirements and their budget, according to a recent survey.

In May, the U.S. Department of Labor published its new overtime regulations that require most employers to pay overtime to all employees earning less than $47,476 per year beginning Dec. 1 — more than double the current threshold of $23,660.

Since the department’s last salary update in 2004, rules had said that anyone who makes more than $23,660 annually earns too much to qualify for time-and-a-half overtime pay. With the update that many say was much-needed, employers paying qualifying employees an annual salary less than the new $47,476 threshold now have to either increase that annual salary to surpass it, or pay employees time-and-a-half when they work more than 40 hours. Read more…