Final FLSA Overtime Rule: Guidance for Non-Profits and Their Board

May 25, 2016 Alerts and Newsletters

Step 1: Does this new FLSA salary minimum even apply to my organization?

Yes. While many organizations may argue they do not have annual revenues (volume of sales or business) of over $500,000, that, in and of itself, is insufficient to conclude that your organization is not covered by the FLSA. First, if you have employees who regularly: 1) make out of state phone calls; 2) receive or send interstate mail or e-mails; 3) order or receive goods from out-of-state suppliers; or 4) handle credit card transactions, the FLSA new salary-level minimum is likely applicable. Second, state law matters! As an example, if you are a Maine non-profit, Maine's overtime law applies to all employers regardless of their non-profit status and requires that professional, administrative, and executive employees make 3000 times the State minimum wage or the annualized rate established by the U.S. DOL, whichever is higher in amount. In the current situation, that would mean that the $47,476 salary minimum is applicable. While the DOL has hinted it will not focus enforcement efforts on smaller non-profits, this does not limit individual employee actions.

Step 2: Is the individual properly classified?


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Step 3: How can I respond?

Verrill Dana is here to discuss multiple ways in which non-profits can respond to the recent changes. The DOL has set forth some options in published communications, but there may be others depending on the type of work you are performing and the individuals who are performing the services. Contact a member of Verrill Dana's Labor and Employment Practice Group to discuss more.


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Find more updates on the new overtime rules on Verrill Dana's Labor & Employment Blog, Taking Care of HR Business at www.hrlawupdate.com.

*All charts obtained from DOL Guidance for Non-Profit Organizations on Paying Overtime under the Fair Labor Standards Act.

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This communication is intended for general information purposes and as a service to clients and friends of Verrill Dana, LLP. This publication, which may be considered advertising under the ethical rules of certain jurisdictions, should not be construed as legal advice or a legal opinion on any specific facts or circumstances, nor does it create attorney-client privilege.

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