TRUSTED ADVISORS TO NONPROFITS

Wagenmaker & Oberly provides legal counsel to NONPROFIT ORGANIZATIONS across the nation with offices in Chicago and Charleston.

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FLSA Overtime Rules Finalized: U.S. Department of Labor Raises Salary Threshold for Exempt Employees

The U.S. Department of Labor recently issued new overtime rules raising the salary threshold for “exempt” employees under the Fair Labor Standards Act, as anticipated within the Obama Administration’s closing months.  The new rule doubles the minimum salary from $455 per week ($23,660 annually) to $913 per week ($47,476 annually), effective December 1, 2016.  To address these legal changes and their implications, the Evangelical Council for Financial Accountability is offering a webinar on June 23, 2016, at 12 pm Central, with attorney Sally Wagenmaker as one of the featured speakers.  For more information and to register, please visit www.ecfa.org/Events.     

Background Basics

The proper classification of employees for FLSA purposes as “exempt” or “non-exempt” is an ongoing consideration for many nonprofits.  The FLSA imposes significant requirements for non-exempt employees, including minimum hourly wage amounts, “time-and-a-half” overtime pay obligations for more than 40 hours worked per week, and accompanying record-keeping requirements. An employer’s misclassification of its employees as exempt can result in serious liability under the FLSA when an employer fails to properly pay overtime or minimum wages. 

Under the DOL’s long-standing rules, the test for exemption is threefold and based on the following: (a) type of work; (b) whether the employee is salaried; and (c) salary amount.  The new DOL rule focuses on the salary amount.  Additional background information about FLSA requirements and development of the new DOL rule is contained in our law firm’s blogs – see August 2015November 2015, and March 2016

NONPROFIT LAW NEWSFEED

I.R.S. Ruling Is Obstacle to Health Care Networks Promoted by Obama

The New York Times  A ruling by the Internal Revenue Service creates a significant obstacle to a new type of health care network that the Obama administration has promoted as a way to prov

IL Supreme Court to tackle hospital property taxes, rights of protesters in Grant Park

Cook County Record  The Illinois Supreme Court will weigh in on the question of whether Illinois law can constitutionally exempt hospitals from paying property taxes.

Opinion: My charitable donations are none of your beeswax

Crain's Chicago Business  In President Barack Obama's recent commencement address at Howard University, he decried attacks on free speech that frequently take the form of campus protests a

White House Increases Overtime Eligibility by Millions

The New York Times  The Obama administration, in a far-reaching effort to improve the lot of workers that has ignited criticism from business groups, announced on Tuesday that it was makin

BGA: Despite law, nonprofits contributed to politicians

Chicago Sun-Times  Though federal law bars them from doing so, nearly 90 not-for-profit churches, hospitals and schools in Illinois have contributed a total of more than $84,000 to campaig

Revocation of Federal Tax Exemption at Historic African-American Theater Holds Warning for Others

Nonprofit Quarterly  In April, leadership of Karamu House, a settlement house that includes the oldest African-American theater in the United States, suddenly became aware that the IRS had

Clinton Charity Aided Clinton Friends

The Wall Street Journal  The Clinton Global Initiative, which arranges donations to help solve the world’s problems, set up a financial commitment that benefited a for-profit company part-

Mattiello orders audit of nonprofit at center of grant controversy

Providence Journal  House Speaker Nicholas Mattiello has asked the General Assembly's chief auditor, Dennis Hoyle, to "audit'' the books of Alternative Education Programming, the nonprofit

Goshen bike shop denied property tax exemption

The Elkhart Truth  Denial of a property tax exemption for a nonprofit bike shop is leading to questions about its future. 

With Paterno Revelations, Ruling Deals Hit to Penn State’s Wallet

The New York Times  The judge, Gary Glazer of the Philadelphia County Court of Common Pleas, rejected the university’s argument that its insurer was obligated to cover all of the nearly $1

I.R.S. Ruling Is Obstacle to Health Care Networks Promoted by Obama

The New York Times  A ruling by the Internal Revenue Service creates a significant obstacle to a new type of health care network that the Obama administration has promoted as a way to prov

IL Supreme Court to tackle hospital property taxes, rights of protesters in Grant Park

Cook County Record  The Illinois Supreme Court will weigh in on the question of whether Illinois law can constitutionally exempt hospitals from paying property taxes.