On May 18, the federal Department of Labor announced a final rule updating compensation for overtime. There is no exemption for nonprofits in the final rule, which updates the minimum salary level to $47,476 annually for workers to be exempt from overtime regulations. If your grantees employ workers who earn less than $47,476 annually (and most nonprofits do), the new rule is potentially a significant budget disruptor when it takes effect on December 1, 2016.
Greater Pittsburgh Nonprofit Partnership has posted helpful information for nonprofits. Additionally, both funders and nonprofits can participate in Independent Sector’s two-part webinar series (May 24 and 31) to learn how nonprofits can prepare for and comply with new overtime rules.