Proposed Changes to Overtime Pay Rules

August 26, 2015

By Henry Bogdan, Advocacy and Public Policy Director, Maryland Nonprofits

The U.S. Department of Labor (DOL) has proposed changes to rules under the Fair Labor Standards Act (“FLSA”) that could significantly increase the number of workers required to be paid for overtime. In Maryland, most employers also fall under state wage and hour laws, whose requirements closely follow the existing federal rules. The DOL proposals are summarized in this analysis by the National Council of Nonprofits, suggesting, as we do, that all nonprofits carefully review which of their employees are covered now by federal and state law, and how the federal changes may affect them.

You should also review this advice by a former DOL administrator, pointing out that the FLSA’s overtime provisions, and therefore the proposed increased requirements, may not apply to many nonprofit employers because of their size, as long as individual employees are not actively engaged in “interstate commerce”.

Maryland Nonprofits has joined NCN and other national or regional groups in asking the Department of Labor to extend the comment period on the proposed rules to allow more time for nonprofits to assess the impact on their workers, missions and clients. Submit your comments here by September 4th. Please also forward a copy of your comments to me.