Overtime Rules Change May Affect Your Nonprofit.
As you may have seen in the email alert from NYCON and the National Council of Nonprofits, the US Department of Labor published its revised regulations increasing the overtime-exempt salary level, from $23,660 to $47,476 annually for 2016 through 2019. Federal and state law requires pay at time-and-a-half for any hours worked above 40 in a week, unless the worker qualifies for an exemption.
A number of New York nonprofits won't initially be subject to the new federal exemption salary threshold as they commonly aren't considered to be enterprises with annual business excessing $500,000 and often don't have individual employees engaged in interstate commerce. The new threshold is specifically applicable to certain nonprofits (primarily, hospitals, schools and organizations providing medical or nursing care).
There is speculation that the increased federal threshold may prompt New York to align its own exempt salary threshold (presently $675 per week or $35,100 annually, which does apply to most nonprofit employers) to the federal standards.
NYCON recommends that all New York nonprofits learn more and take action to assess if they're covered by the federal Fair Labor Standards Act and hence subject to the new exemption salary threshold. The effective date of the federal regulations will be December 1, 2016.
Resources:The US Department of Labor has just released this overview of how nonprofits may be affected.
NYCON has created this guide to assist New York nonprofits in determining how/if they need to react to the federal rules.
Need Assistance? NYCON can be available to assist with some of these determinations, and will notify you if NY appears to be taking action to close the 'gap'. Contact us today.
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