Proposed new regs would revise overtime provisions for nonprofits

The U.S. Department of Labor has announced proposed new regulations designed to update and revise overtime protections for millions of workers employed by nonprofits, for-profits, and governments, and it has invited submission of public comments.

The draft regulations call for increasing the minimum salary level that executive, administrative, and professional employees must be paid (from $35,568/year to $55,068/year) to exempt them from overtime pay of time and half of wages for hours worked in excess of 40 in any week. The Labor Department is also proposing raising the minimum salary level for “highly compensated employees” from $107,432/year to nearly $144,000/year, and establishing a mechanism for automatically raising these salary levels in the future.

The overtime salary thresholds were last hiked at the beginning of 2020. The proposed rule is open for public comment until on or about November 7, 2023. See the National Council of Nonprofits’ analysis, DOL Proposed Overtime Reforms and the Impact on Nonprofits, and review these tips for preparing your comments.

Why It Matters

The effect of the proposed overtime regulations, if implemented, would vary widely among nonprofit organizations. We encourage all charitable nonprofits to consider filing public comments after conducting a mission-based analysis of how the proposed increases in the minimum salary levels would affect operations, resources, staffing, and equity, as well as what impact the draft regulations would have on people relying on the services and the mission of the nonprofit.

From the National Council of Nonprofits