By Nick Goldstein, vice president of regulatory and legal issues, ARTBA
The U.S. Department of Labor (DOL) March 7 issued a regulation changing the manner in which workers qualify for overtime pay. Specifically, the new rule raises the threshold that an employee can be exempted from overtime pay from $23,660 per year to $35,308 per year.
In 2016, the Obama administration attempted to raise the threshold to $47,476, but it was blocked in federal court. The new rule does not address a number of issues raised by the non-profit sector. The major concern, for example, is that the new minimum salary level for overtime exemption does not reflect geographic differences in average salary levels. In other words, the minimum salary in New York City is very likely to be much higher than it would be in Cheyenne, Wyoming.
More information on this issue is available at the DOL website.