In a new report, The Nonprofit Overtime Implementation Conundrum, the National Council of Nonprofits presents the findings from a national survey of nonprofits with government grants and contracts regarding the challenges of compliance with the new overtime regulations. The U.S. Department of Labor's Overtime Final Rule, published in late May and effective December 1, will require most for-profit, government, and nonprofit employers to pay overtime to full-time employees earning less than $913 per week (47,476/yearly). The survey found that a third of respondents (34 percent) intend to likely reduce staff and a third (33 percent) expect to roll back services.
The survey also found that many leaders of nonprofits expressed support for the concept of the new rule, but expressed frustration at being caught between a rock and a hard place. Nonprofits find themselves bound by written agreements requiring work at fixed reimbursement rates while changes in federal wage and hour policy impose new operating expenses that were not anticipated when the agreements were signed.
One solution identified in the report is for governments to agree to renegotiate the existing grants and contracts. Read the executive summary, full report, and infographic. Last month, the NH Center for Nonprofits partnered with Devine Millimet for two trainings on the DOL rule. The Center will continue to provide updates, training opportunities and information.