Federal Labor and OMB Regulations to Affect Nonprofits

Policy changes coming out of Washington, D.C., this spring are expected to affect the costs and operations of New Hampshire nonprofit organizations that have government grants and contracts. The policy changes involve the expected publication of the Labor Department's revised overtime regulations and potential revisions to the OMB Uniform Guidance affecting how nonprofits spend grant funds.

The US Department of Labor is expected soon to put in place new overtime regulations that will require most employers, including nonprofits, to pay overtime to all employees earning less than approximately $50,000 (the current threshold is $23,660). The new salary level threshold will apply regardless of whether individual employees are considered salaried (exempt) or hourly (nonexempt). The new rules will likely go into effect sometime this summer or fall. Employers will have various options to comply with the change in overtime rules, ranging from increasing exempt employees' salaries to the new level, converting them to hourly employees and paying overtime, or making other changes to benefits or operations.

In addition, the grants reforms of the federal Office of Management and Budget, expressed in the OMB Uniform Guidance, include new procurement procedures. Starting in 2017, the Uniform Guidance requires that whenever a nonprofit or other entity uses federal funds that passed through any level (local, state, or nonprofit) to make an aggregate purchase over $3,500, then that entity will be required to obtain and document multiple price quotes before making a purchase.

In the coming days, the NH Center for Nonprofits, in partnership with the National Council of Nonprofits, will share more detailed information, comment opportunities, as well as compliance options and materials.

Post date: May 10, 2016
Topics: NH News | National News

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