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Overtime Reprieve – Cause for Thanksgiving!
November 24, 2015
Nonprofit employers can breathe a sigh of relief that proposed regulatory changes for “exempt employee” salary qualifications have been shelved, at least for now.
The Department of Labor (DOL) previously published proposed regulations to increase the minimum annual salary requirement for exempt employees, from the current $22,660 level to $50,440. In other words, in order for a salaried worker who performs generally higher-level duties to qualify as “exempt” from overtime and other protections under the Federal Labor Standards Act (FLSA), he or she must also earn at least $50,440 annually. This drastic adjustment resulted in tremendous opposition, with an enormous outpouring of 270,000 publicly filed comments. Many nonprofits have been quite alarmed, since such change could impose drastic financial adjustments to compensate currently exempt employees who work sacrificially long hours for low pay.
The DOL has indicated that it will take substantially more time to review the comments, with finalization not likely until late 2016. In the meantime, employers should maintain their current classifications for exempt and non-exempt employees, with accompanying budgetary and time-keeping considerations.
NONPROFIT LAW NEWSFEED
Utah nonprofits file suit challenging donor disclosure law
Standard Examiner, Three Utah nonprofits are challenging a state law that forces organizations to report donors who give more than $750 to influence campaigns or voters.
Montana AG’s office opposes rule on tax credit program
Great Falls Tribune, HELENA – The state Attorney General’s Office sent a letter this week to the Montana Department of Revenue, telling officials there that a proposal to exempt religious
Nonprofit accused of bilking special needs trusts
South Bend Tribune, INDIANAPOLIS (AP) — An Indianapolis nonprofit is accused in a lawsuit of taking millions of dollars in excessive fees from trusts owned by
Conservative Nonprofit Broke Campaign-Finance Law, Says FEC
The Chronicle of Philanthropy, A 501(c)(4) group with links to prominent conservative operatives violated federal law by failing to properly disclose details about its political advertisin
Supreme Court to Hear New Case on Contraception and Religion
Watchdogs ask Justice Department to review secret donor group airing pro-Rubio commercials
WASHINGTON (AP), Conservative Solutions Project, a nonprofit group funded by secret donors that has so far spent $8 million in ads promoting Republican presidential candidate Marco Rubio,
llinois District Violated Transgender Student’s Rights, U.S. Says
New York Times, Federal education authorities, staking out their firmest position yet on an increasingly contentious issue, found Monday that an Illinois school district violated anti-disc
Thrift giant resisted oversight of its charitable work in Washington
Investigate West, For a quarter century, the nation’s largest for-profit thrift store chain rebuffed state officials’ assertions that it was required to report the income collected on beha
Provision in 2013 New York Law on Nonprofits Is Delayed
New York Law Journal, A plan to prohibit an employee of a nonprofit corporation from serving as its chairman or chairwoman has been put off for at least a year.
Tea party targeting accusations, legal issues persist for IRS after Justice ends probe
The Washginton Times, The IRS is still holding up the nonprofit applications of tea party groups, including one that has been waiting nearly six years for approval, as conservatives panned