Policy Update: Proposed Changes to Overtime Pay Rules

By Henry Bogdan, Director of Public Policy & Advocacy, Maryland Nonprofits

Maryland Nonprofits joined local, state and national nonprofit groups, along with others (249,000+ by last week’s cutoff and another 40,000 since) in submitting comments on the US Department of Labor’s proposed changes to required overtime payments for “exempt” executive, administrative and professional employees. These were described in an earlier blog post and member weekly update.

Briefly, the proposal amends the regulations that define those employees exempted as “executive”, “administrative” or “professional”. DOL proposed raising the minimum salary level that, along with other criteria such as specified duties/responsibilities, exempt employees in those categories from the federal overtime pay requirement. The change is an increase from $455 per week (app. $23,660 per year) to $921 per week (app. $47,900 annually), with an annual inflation adjustment. We understand that this will apply in Maryland, without regard to a limited exemption for certain nonprofits in the federal law, because of the way Maryland and some other states have linked to the federal definitions.

Our comments are available here, and conclude “The nonprofit community recognizes better than most the harsh economic realities that lead to this proposed rule, and we strongly endorse its purpose. But we must also urge that its implementation in some manner take account of the circumstances under which it may lead to reducing access to critically-needed services.”