Nonprofit Coalition: Proposed Overtime Rule Would Hurt Nonprofit Sector
The proposed rules would require dramatic changes to the budgets, staffing
Last week, the American Society of Association Executives (ASAE) joined a broad coalition of almost 90 associations in sending a letter to Congress urging the Department of Labor (DOL) to reconsider its proposed rule that would make 3.6 million additional U.S. workers eligible for overtime pay.
Under the federal Fair Labor Standards Act (FLSA), employees are entitled to receive premium overtime pay when they work over 40 hours per week, unless the employee is considered exempt from these requirements. Employees whose primary duties fall under the executive, administrative and professional (EAP) exemption, who are paid on a salary basis, and whose compensation meets the minimum salary level are exempt from overtime requirements.
The Biden administration's proposed rule would require employers to pay overtime to workers who make less than about $60,000 per year. That's up considerably from the current threshold set in 2019 during the Trump administration of $35,568. This issue is especially important to associations because many, if not most, association employees hold roles that qualify them as exempt from overtime, provided the salary basis and salary level tests are met.
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