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Council asks for input on proposed overtime standards

On June 30th, President Barack Obama proposed new standards for employee eligibility for overtime pay.  Currently, salaried workers who make more than $23,660 are exempt  from overtime pay. The proposed rule change would raise that threshold for the first time in over ten years to $50,440 for those workers now exempt from overtime benefits.

Other proposed changes include, but are not limited to:

  • updating the over time salary threshold based on inflation or wage growth over time
  • increasing the total annual compensation requirement needed to exempt highly compensated employees to the annualized value of the 90th percentile of weekly earnings of full-time salaried workers ($122,148 annually)

This new threshold will go into effect as early as January 1, 2016. The Council is the aware of some implications these changes will have on the human services sector. The President estimates the proposed changes are estimated to affect 5 million Americans.

If this may be an issue for your organization, please contact Christine Mikiewicz with any specific concerns or comments Providing comments will allow the Council to better strengthen our support for our members on Capitol Hill. The Council would like you to share any thoughts you have about the proposed overtime regulations with us no later than Thursday, August 27.

We have joined with the National Council of Nonprofits in asking for a 60 day extension of the comment period from September 4, 2015 to November 3, 2015 in order to further evaluate how these changes will effect nonprofits. You can read the letter here. While the letter had been submitted the deadline for comments on this rulemaking to the Department of Labor is currently remains September 4, 2015.

For more information please view the White House fact sheet on updating overtime and the Department of Labor notice, which includes FAQs and detailed info graphics.