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National Council report on OT challenges released

The National Council of Nonprofits today issued a new report, The Nonprofit Overtime Implementation Conundrum, presenting the findings from a national survey it conducted of nonprofits with government grants and contracts. The survey found that a third of respondents (34 percent) reported they will likely reduce staff and a third (33 percent) expect to be forced to cut back on the services offered to the public.

The National Council received more than 1,000 responses from nonprofits in all 50 states, including several Providers' Council members. Providers' Council President and CEO Michael Weekes has noted that while the change is long overdue and consistent with the Providers' Council's pro-workforce agenda supported by its members, the Overtime Final Rule will create a financial burden on them.

The National Council's report shows that this sentiment is shared by nonprofits across the country. While many respondents expressed support for the concept of the new rule, nonprofits with government grants and contracts expressed frustration at being caught between a rock and a hard place: bound by written agreements requiring them to do a certain amount of work at a fixed reimbursement rate when changes in federal wage and hour policy will impose operating expenses to levels that were not anticipated when the agreements were signed.

One solution identified in the report is for governments to agree to reopen or renegotiate the existing grants and contracts. Read the executive summary, full report and infographic.

The U.S. Department of Labor’s Overtime Final Rule, published in late May, will go into effect on December 1 requiring most for-profit, government and nonprofit employers to pay overtime to full-time employees earning less than $913 per week ($47,476/yearly) regardless of whether they are otherwise classified as white-collar workers.

The Providers' Council is collecting data from members to try to determine the full implact of this mandate on our human service providers and providing information and tools as they become available, such as our recent forum. Questions about the Overtime Final Rule may be e-mailed to Bill Yelenak.