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New DOL Overtime Rule Changes the Landscape for Nonprofits, Too

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.  For more information, please click here to read a Patterson Belknap client alert on this topic.