Overtime Rule

Overtime Rules

The overtime rule has been identified as a major area of concern for nonprofit employers. ASAE submitted comments in August 2017 to the Department of Labor (DOL) as it prepares to revise regulations for overtime eligibility.

Earlier this year, Labor Secretary Alexander Acosta said the salary threshold proposed by the department under the Obama administration was excessive and too burdensome on many employers. The Obama-era rule would have doubled (to $47,476) the salary threshold under which virtually all workers are guaranteed overtime pay if they work more than 40 hours per week. Acosta has suggested, however, that the current minimum salary level of $23,660 should be updated, and the DOL’s request for comments is considered to be a first step in the agency’s plan to revise the regulations. The overtime rule was last adjusted in 2004.

ASAE’s comments focus on how potential changes to overtime eligibility would affect associations and other nonprofit employers. As it did with the Obama-era rule, ASAE emphasized that it does not oppose increasing the overtime salary threshold, but that creating a one-size-fits-all threshold for overtime eligibility across the country, regardless of cost-of-living differences, would not be workable for many employers.

Based on the federal government’s inflation calculator, ASAE has suggested that an inflation-adjusted minimum salary level of $30,830 would be an appropriate threshold for overtime eligibility.

The overtime rule was a top issue of concern for members in ASAE’s 2016 and 2017 Advocacy Priority Survey, and it mobilized the association community across the country. ASAE took this issue to Capitol Hill as part of American Associations Day, our annual legislative fly-in for association professionals. We held more than 250 meetings with lawmakers and their staff to explain how changes to this rule will affect association professionals.

ASAE also submitted extensive written comments to the Department of Labor and met face-to-face with DOL and Office of Management and Budget officials to share our concerns that the new rule would adversely affect many nonprofit organizations and other employers with limited revenues, and could harm many affected employees as well.