Legal Alert: The U.S. Department of Labor’s Revised White Collar Regulations: Part I – Overview of the DOL’s Final Rule and Its Impact on Nonprofits



On May 23, 2016, the United States Department of Labor (DOL) published revised regulations under the Fair Labor Standards Act (FLSA) governing the minimum salary that must be paid to executive, administrative, and professional employees—that is, “white collar” employees—in order for those employees to be exempt from an entitlement to overtime pay for hours worked in excess of 40 per week. The revised regulations go into effect on December 1, 2016.

Pro Bono Partnership and the Jackson Lewis law firm, in conjunction with the Center for Non-Profits, the CT Community Nonprofit Alliance, Lawyers Alliance for New York, and the Nonprofit Coordinating Committee of New York, have prepared a two-part article discussing the revised regulations and what they mean for nonprofits.

Today we are publishing Part I of the article, written by Michael A. Frankel, Esq. and Joseph J. DiPalma, Esq., from Jackson Lewis P.C.  They explain in detail the major changes made by the DOL and how those changes will impact the nonprofit community.  They also discuss the obligation of nonprofits to simultaneously comply with both the federal FLSA and applicable state wage and hour laws, and they provide a brief reminder to nonprofits about some of the limits on the use of volunteers.

In Part II, which will be published next week, Christine Michelle Duffy, Esq., from Pro Bono Partnership, provides employers an overview of some considerations and strategies for addressing the changes mentioned above. Part II will (1) help nonprofits navigate decisions relating to whether to reclassify exempt employees and nonexempt, (2) alert nonprofits to some hidden landmines, and (3) provide nonprofits tips for complying with the revised regulations.

To read Part I, please click here.

QUESTIONS

If you have any questions regarding the content of the article, please contact one of the following Pro Bono Partnership lawyers:

  • Connecticut and New York nonprofits: Jennifer Grudnowski, at 914-328-0674 ext. 335.
  • New Jersey nonprofits: Christine Michelle Duffy, at 973-240-6955 ext. 303.

Pro Bono Partnership, the Center for Non-Profits, the CT Community Nonprofit Alliance, Lawyers Alliance for New York, and the Nonprofit Coordinating Committee of New York wish to thank Mike Frankel, Joe DiPalma, and Jackson Lewis for preparing Part I of this article for the benefit of the nonprofit communities in Connecticut, New Jersey, and New York.