The Alliance for Strong Families and Communities Public Policy and Mobilization Office is hosting an interactive webinar on new questions issued by the U.S. Department of Labor (DOL). This webinar will allow Alliance members to provide feedback on the organizational considerations listed below and inform the Alliance’s official comments.

The webinar is Friday, Aug. 25 from 1:30-2:30 CT. Register online to participate.

The DOL has published a request for information (RFI) in the Federal Register seeking comments from the public about how the white-collar salary regulations under the Fair Labor Standards Act (FLSA) should be updated. The salary test for the overtime rule is out of date since it has not been adjusted since 2004. Last year, the Obama administration sought to update these regulations, but that final rule was blocked by a federal court. The Alliance was a key player in ensuring that the nonprofit human services sector be considered, since implementation for our sector is much different than the for-profit sector. It is just as important that we send the same message to the current administration. We need to offer recommendations for how changes can best be implemented to adjust the salary level so that the quality and quantity of our programs and services is not harmed and we are able to compete in the marketplace.

The most prominent question the RFI asks is if and how the salary level test should be updated. Last year, many argued that the proposed new salary level, $913/week ($47,476 yearly) from the current $455/week ($23,660 yearly), was too high to immediately implement. In order to articulate how best to implement changes to the rule, nonprofit organizations need to examine their operations. The National Council of Nonprofits has developed some questions to guide nonprofits in understanding the impacts, both negative and positive, on their organizations should changes be made to the law.

  1. What effect—positive or negative—would potential changes to the white-collar exemption have on your organization’s ability to advance its mission? Variables could include the need to raise more money, serve fewer people, or not being able to perform under government grants or contracts that fail to cover full costs, among many others.
  2. What effect—positive or negative—could potential changes have on the individuals and communities your organization serves? For example, would higher compensation, if realized, reduce the number of individuals seeking services from the organization, and thus cut the workload of the organization or enable you to pursue other mission objectives?
  3. Assuming changes may be made, what transition rules do you think would be appropriate for your nonprofit and similarly situated organizations? Should implementation of final regulations be delayed until a certain date, until the beginning of an organization’s fiscal year, or phased in over a period of time?

In addition, nonprofits with government grants will need to consider the impact that cost changes in the middle of grant/contract would have on the organization, as many grants to not update alongside legislated salary changes.

Consider these questions and register online to share your feedback during the webinar Aug. 25 from 1:30-2:30 p.m. Join the Alliance Peer Exchange group for human resources professionals on myAlliance to stay involved in this issue.

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