On September 24, 2019, the U.S. Department of Labor (DOL)
unveiled its long-awaited final rule under the Fair Labor Standards
Act (FLSA) adjusting the overtime pay exemption threshold from
$23,600 to $35,568. This increase is a critical change for the many
nonprofit organizations that have workers earning less than $35,568
but more than $23,600, as they may now have to pay such workers
overtime.
Effective January 1, 2020, employees who make less than $35,568
will be entitled to overtime pay at a rate of one and one-half
times the employee's regular rate of pay for all hours worked
beyond 40 hours in a workweek. Employees who (i) make $35,568 or
more on a salary basis and (ii) perform duties that fall
within one of the long-established exemptions from overtime pay
(e.g., executive, administrative, or learned professional duties,
among others) are exempt from the overtime pay requirement under
federal law. Note, however, that some states, such as New York, set their
