Policy Update: DOL Overtime Rule Change

DOL Overtime Rule Change

On Tuesday, September 24, the Department of Labor released their Final Rule regarding overtime compensation related to the Fair Labor Standards Act. Of note, the new rule updates three key points pertinent to the nation’s nonprofits.

1. Raises the standard minimum level for salaried workers.
2. Raises the salary minimum for highly compensated workers.
3. Permits employers to treat nondiscretionary bonuses and incentive payments to make up 10 percent of the standard salary level.

For full details on the monetary adjustments these changes made, please read the analysis of these points provided by the National Council of Nonprofits. Additionally, the National Council of Nonprofits is planning a webinar for mid to late October that will go through the details of these changes with a representative from the Department of Labor. We will update you once this has been scheduled.

The Final Rule goes into effect on January 1, 2020. There is no phase-in or gradual adjustment for the implementation of these changes, and state policy could exceed these changes, depending on the reception by the state legislatures of Kansas and Missouri.

We will keep you informed of any exceptions once the 2020 state legislative sessions begin.

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