IS Summary: Department of Labor Final Overtime Regulations

Independent Sector published this summary on the 2016 Department of Labor (DOL) final rule that revises regulations governing overtime compensation under the Fair Labor Standards Act (FLSA).

Specifically, the final rule increases the salary threshold for employees to be exempt from overtime compensation, impacting an estimated 4.5 million employees in the United States. Highlights of the final rule include:

  • Increased minimum salary threshold to be exempt from overtime compensation to $47,476;
  • Automatic updates to salary thresholds every three years; and
  • Higher salary thresholds effective December 1, 2016.

This IS summary includes background, specifics on the rule change, and implications for the charitable community.

Policy Issues: Nonprofit Operations, Overtime Pay Regulations
Resource Types: Policy Brief