Posted on April 19, 2016

On June 30, 2015, the United States Department of Labor proposed raising the minimum salary required for the “white collar” overtime exemptions (executive, administrative, and professional) from $455 per week ($23,600 per year) to $921 per week ($47,892 per year), with automatic annual upward adjustments. These regulations are likely to be adopted in the next few months. If these regulations take effect, many employees who are currently classified as salaried exempt will no longer pass the salary test. This change will affect millions of employees who earn more than $23,600 but less than $47,892 per year. The new regulations will significantly impact the nonprofit world, where salaries in the $25,000-$45,000 range are common. Nonprofits should start planning now to meet the upcoming budgetary challenges. A new article on our website helps guide nonprofits through these changes.