Note (added January 2018):
“The Department of Labor is undertaking rulemaking to revise the regulations located at 29 C.F.R. part 541, which govern the exemption of executive, administrative, and professional employees from the Fair Labor Standards Act’s minimum wage and overtime pay requirements. Until the Department issues its final rule, it will enforce the part 541 regulations in effect on November 30, 2016, including the $455 per week standard salary level. These regulations are available at: https://www.dol.gov/whd/overtime/regulations.pdf.” (https://www.dol.gov/whd/overtime/final2016/)
Stated by the US Department of Labor:
“In 2014, President Obama directed the Secretary of Labor to update the overtime regulations to reflect the original intent of the Fair Labor Standards Act, and to simplify and modernize the rules so they’re easier for workers and businesses to understand and apply. The department has issued a final rule that will put more money in the pockets of middle class workers – or give them more free time.
“The final rule will:
- Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers.
- Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.
- Strengthen overtime protections for salaried workers already entitled to overtime.
- Provide greater clarity for workers and employers.
“The final rule will become effective on December 1, 2016, giving employers more than six months to prepare. The final rule does not make any changes to the duties test for executive, administrative and professional employees.” (https://www.dol.gov/featured/overtime)
The Minnesota Theater Alliance strives to provide our Minnesota theaters with resources to help them stay informed about these changes, including seeking out resources that will help them decipher how the new rules are applicable to their organizations and may alter how they currently do business. We will add to these resources as more become available. In addition, we are working with partner organizations to potentially develop a training or performing arts-specific resource in the near future.
Please review the resources if you have paid employees, even if you are assuming these changes wouldn’t apply to you.
Information from the Department of Labor
- Overtime Final Rule and the Nonprofit Sector
- Guidance for Non-Profit Organizations on Paying Overtime under the Fair Labor Standards Act
- Department of Labor Overtime Resources
- National Council of Nonprofits: Overtime Regulations and the Impact on Nonprofits
- Independent Sector: Overtime Rules for Nonprofits, Parts 1 & 2 (Webinar)
- The U.S. Department of Labor: Preparing for the Overtime Final Rule (Webinar)
- Theatre Communications Group: FLSA Overtime Regulations Webinar
- National Council of Nonprofits: Classifying Employees Correctly