On November 22, 2016 U.S. District Judge Amos Mazzant (Eastern District of Texas) issued a preliminary injunction that halted the Obama Administrations overtime rules. This decision meant the new overtime rules were not implemented on Dec. 1 as planned. The judge has now overturned the overtime rules proposed by the Obama Administration. The judge also ruled that the proposed rules gave too much consideration to salary when it swept many professional and managerial positions into overtime by by nearly doubling the salary level below which employees had to be paid for overtime. The judges ruling now calls into question the Department's authority to use a salary level test when determining the exempt status of executive, administrative, and professional employees.
The Trump administration is now soliciting public comment on new rules it plans to propose. This request for information period is your chance to express which salary thresholds you support.
The final day you can submit written comments is Sept. 25, 2017.
As nonprofits we operate with tight resources, but most of us also recognize the importance of staff receiving fair compensation and earning a living wage. In considering your response to the DOL, we recommend you advocate that the DOL find a way to ensure that employees are not inappropriately categorized into executive, administrative, and professional positions and thus denied overtime.
This is a major issue for the nonprofit sector since the lack of HR professionals or consultants in most nonprofits in the country means many employees are not appropriately categorized as non-exempt and thus their organizations are illegally not paying them overtime.
If your organization does not have a clear process for determining exempt and non-exempt employees, read "How to decide if an employee meets the duties test" contact 501 Commons for assistance in making this determination.
Or contact firstname.lastname@example.org for a Quick Consult ($25 per 15 minutes) The small cost of a consultation is small price to pay to avoid an employment practice lawsuit!
Many nonprofit are involved in some way in increasing equity in our communities. Included in that should be assuring that we are not treating our non-exempt nonprofit employees unfairly when they work more than 40 hours a week.