DOL Update to Overtime Regulations
UPDATE! November 2016
On November 22, Judge Amos Mazzant of the U.S. District Court of the Eastern District of Texas, an Obama-appointed judge, halted the implementation of the updated overtime regulations which would have increased the salary threshold for individuals required to receive overtime compensation.
There have been several efforts to overturn or minimize the impact of this update to the Fair Labor Standards Act. If court consideration extends past January 20, a Republican-controlled Congress and the new administration could overturn the updated regulations. The injunction is being reviewed by the Department of Justice to determine next steps.
Dance groups and other nonprofits are in varying stages of preparation for this updated regulation, which would have gone into effect December 1. The Society of Human Resource Management suggests that, while employers can maintain the status quo come December 1, it may be hard to retract changes that have already been implemented.
Nonprofits did not oppose an update to the salary threshold, however, in comments submitted to the Department of Labor last year, Independent Sector (Dance/USA is a member), an organization that advocates on behalf of nonprofits, did request a phased-in implementation.
Dance/USA will continue to track this issue and provide updates as we learn more.
Helpful Resources on this injunction:
In May 2016, the U.S. Department of Labor finalized an update to the Fair Labor Standards Act (FLSA) that will have a dramatic impact on nonprofit organizations. The update will double the salary threshold that exempts employees from overtime compensation from $23,660/year to $47,476/year.
What You Should Know
Who is Covered?
The Department of Labor proposed new rules during the 2015 summer, with the initial threshold increase set at $50,440. DOL accepted comments on the proposed regulations in September. Dance/USA signed on to a letter from Independent Sector (Dance/USA is a member) urging the Department to provide more time to prepare comments, as the nonprofit sector needed clarity on the language. That request for an extension was denied. Independent Sector filed comments on behalf of the charitable sector that urged the Department of Labor to:
1.Have a phased in implementation should this proposed rule be finalized;
2.Account for regional economic and market differences;
3.Have an open process for any changes to the duties test.
Dance/USA joined a small group of national nonprofits for a meeting at DOL in December 2015 and shared some of our questions around current overtime regulations.
Neither Dance/USA nor the nonprofit sector as opposed an increase to the salary threshold. The threshold was clearly overdue for an increase. Dance/USA does recognize that many nonprofits dance groups work on tight budgets and lean staff and a steep jump will be challenging. Dance/USA will continue to update this page as we learn more information about definitions and implementation.