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Proposed Overtime Changes Pose Challenges for Nonprofits

Posted Jan 24, 2019 04:26 PM
Washington Nonprofits just released a report outlining how organizations will be affected by the Washington Department of Labor & Industries’ proposed overtime rule changes.

The biggest takeaway is people in the nonprofit sector generally support raising the overtime threshold, but a majority of respondents are concerned that the increase being proposed will result in layoffs and program reductions that negatively impact the people and communities they serve.

Findings include:

  • 21% of respondents say the cost of delivering services will increase by 10-19%
  • If the overtime threshold rises, 75% predict they will adjust by converting salaried staff to hourly
  • 63% say they’ll reduce staff hours, 28% will raise program fees, 24% will have to reduce the number of people they serve, and 25% will have to resort to laying off staff
  • 70% say executive, administrative, and professional staff will be impacted the most (such as reclassification, overtime caps, reduced hours, etc.)
  • 35% say front line/direct services staff will be most affected

The public comment period ended on Dec. 31. L&I should be sending out an official proposal in the next few weeks, with a public comment period to follow. For more information, contact David Streeter at (855) 299-2922 or david@washingtonnonprofits.org.