New Overtime Rules Go into Effect on Dec. 1!
September 15, 2016 (This is an update to our originally posted item from May 18, 2016)
**Important update: On November 22, 2016, a federal judge in Texas imposed a nationwide injunction on the new overtime regulations that were due to take effect on December 1, 2016. Please see our news item for more details.
On May 18 the Obama administration finalized new rules increasing the number of workers eligible to receive overtime compensation. The new requirements will take effect on December 1, 2016, and will raise the threshold for overtime compensation from $455 a week ($23,660 for a full-year worker) to $913 a week ($47,476 for a full-year worker). In order to be in full compliance, orchestras will need to have payroll and accounting systems modified well before the December 1 deadline.
Department of Labor Guidance
In response to questions and concerns raised by the nonprofit community regarding the original draft proposal, the Department of Labor provides nonprofit-specific information, in addition to general resources:
- Overtime Final Rule and the Nonprofit Sector
- Guidance for Non-Profit Organizations on Paying Overtime under the Fair Labor Standards Act
- Department of Labor Overtime Resources
Is your orchestra currently in compliance with overtime rules under the Fair Labor Standards Act? And, how will you adapt as the new federal overtime rules go into effect on December 1? The nonprofit community has been rapidly analyzing the final rule. The League is an active member of the National Council of Nonprofits and Independent Sector, and has been partnering with our counterparts in the broader nonprofit cultural community to seek clarity on the rules. Check out the following resources:
- National Council of Nonprofits: Overview and analysis and state resources. NEW: NCN update on the injunction
- Independent Sector: Two-Part Webinar on Current Compliance and Adapting to New Rules
- The U.S. Department of Labor: Webinar for the non-profit sector, with Q&A page
- Theatre Communications Group: Webinar on Updates to FLSA Overtime Regulations
- Dance/USA: Resource on updated overtime regulation