Overtime Policy Developments and Resources
The U.S. Department of Labor is taking a fresh look at potential regulations to change overtime compensation requirements. On September 25, 2017, the Department received many thousands of comments responding to an initial request for input on the topic. The League filed comments, along with other national nonprofit organizations, asking for a phased-in approach to changes, clear guidance for nonprofits, and additional opportunities to provide input when more specific regulatory changes are proposed.
On August 31, 2017 a federal court formally struck down the Obama Administration’s 2016 attempt at new regulations. On November 22, 2016, a federal judge in Texas imposed a nationwide injunction halting implementation of the Obama Administration’s overtime regulations that were due to take effect on December 1, 2016, as reported in a League news update. The rule that had been set to go into effect would have raised 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).
Under the Trump Administration, Labor Secretary Alexander Acosta stated in June 2017 that the Department will start the process for revising the Obama Administration’s overtime rule. At his Senate confirmation hearing in March, Acosta said it was unfortunate that a threshold could go unchanged since 2004, but that doubling the limit as the Obama Administration attempted “does create what I’ll call a stress on the system.”
Is your orchestra currently in compliance with overtime rules under the Fair Labor Standards Act? In response to questions and concerns raised by the nonprofit community regarding the 2016 Obama Administration effort to increase the number of workers eligible to receive overtime compensation, the Department of Labor provided nonprofit-specific information. 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.
- U.S. Department of Labor Guidance for Non-Profit Organizations on Paying Overtime under the Fair Labor Standards Act
- Department of Labor General Overtime Resources
- National Council of Nonprofits Background and Resources