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Visit https://www.dol.gov/whd/overtime/final2016/nonprofit-guidance.pdf for more information about the requirements of the new overtime law and to find out if the regulation applies to your nonprofit.
In May, the U.S. Department of Labor released a new law that is going to increase the operating costs of many nonprofits in Chattanooga. Especially in the nonprofit sector, this creates new opportunities for us, as a community, to support those who support so many of our neighbors in need.
The law states that on Dec. 1, the number of employees eligible for overtime pay will increase. In the nonprofit world, this could mean bigger paychecks for some employees – a good portion of whom currently live in poverty. But it could also mean increased overhead for nonprofit employers, whose resources already are stretched thin.
Needless to say, this regulation has been the subject of controversy among nonprofits. Whether we’re for or against it, two things are certain: 1) in order to comply, many organizations will have to make changes in the coming months; and 2) those changes could be costly.
So what, exactly, is the new rule? Effective Dec. 1, employees earning less than $913 per week ($47,476 per year), will not be considered exempt, and therefore will be eligible for overtime pay. Previously, workers needed to earn less than $455 per week ($23,660 per year), in order to receive overtime.