New DOL Overtime Rule Changes the Landscape for Nonprofits, Too

Patterson Belknap Webb & Tyler LLP
Contact

On May 18, 2016, the U.S. Department of Labor’s Wage and Hour Division (“DOL”) issued a final rule modifying overtime eligibility under the Fair Labor Standards Act.  The final rule increases the salary threshold for overtime eligibility for exempt executive, administrative, and professional employees to $47,476 per year.  It also increases the salary requirement for the “highly compensated” exemption to $134,004 per year. The DOL calculates that this will extend overtime pay eligibility to 4.2 million workers currently classified as exempt.  Employers should review the new rule and assess their employees’ overtime eligibility.  The rule applies to all employers, for-profit and non-profit alike, and goes into effect on December 1, 2016.  Charities with employees should review the rule and its implications, and take steps necessary to ensure compliance by the effective date. 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Patterson Belknap Webb & Tyler LLP | Attorney Advertising

Written by:

Patterson Belknap Webb & Tyler LLP
Contact
more
less

PUBLISH YOUR CONTENT ON JD SUPRA NOW

  • Increased visibility
  • Actionable analytics
  • Ongoing guidance

Patterson Belknap Webb & Tyler LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide