Employment

DOL Proposed Overtime Reforms Impacts Nonprofits

National Council of Nonprofits:  “The U.S. Department of Labor has proposed sweeping new regulations designed to expand overtime protections for millions of workers employed by nonprofits, for-profits, and governments. The draft regulations, which will not go into effect (if at all) until after a period of public comment and analysis, would more than double the minimum salary level that white-collar employees must be paid (from $23,660 to $50,400) to exempt them from overtime pay of time and half of wages for hours worked in excess of 40 in any week. The Labor Department is also proposing raising the minimum salary level for ‘highly compensated employees’ from $100,000 to over $120,000 per year, and seeking comments on whether the government should establish a mechanism for automatically raising these salary levels in the future.  The National Council of Nonprofits encourages all nonprofits to conduct a mission-based analysis of these proposed regulations.

To learn more download the National Council of Nonprofits’ white paper called “DOL Proposed Overtime Reforms and the Impact on Nonprofits.”

Executive Compensation – The Legal Issues

Nonprofit Law Blog:  “Determining the appropriate amount of compensation to pay an executive is one of the most important decisions a board is asked to make. Board members must balance budgetary concerns with the need to find a qualified candidate. Traditionally, it was not uncommon for nonprofits to expect executives to work for significantly less than they might earn elsewhere because of their passion for the organization’s mission. However, that’s a poor business strategy to rely on for recruiting or retaining the right person for the most pivotal position to the organization’s success.”

Read the entire article on this very important topic.

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