Business Features

How New Overtime Law Affects Nonprofits

“A letter in support of the U.S. Department of Labor’s new overtime rule, from the perspective of one nonprofit.

The U.S. Labor Department (DOL) has now released a final rule updating overtime pay protections for millions of white collar employees across America. Under the new ruling, employees with salaries less than $47,476 (with the level adjusted every three years) will be guaranteed overtime pay when they put in more than 40 hours of work in a week. This rule will sweep broadly across the economy, affecting working people and their employers in every sector. By guaranteeing overtime pay for overtime hours the new rule will sharply reduce opportunities for employers to require their employees to put in extra hours with no pay at all. The new rule also advances the dual purposes of the Fair Labor Standards Act’s overtime pay requirements: to ensure that workers are fairly compensated for all their hours, and to spread hours and work opportunities among more employees and job seekers.”

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