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Nov 22, 2016
Posted Under: Nonprofit News       Tags: human resources

December 1, 2016 has been marked on the calendar of many nonprofit executives, human resources professionals, and payroll departments as the date that changes to the Fair Labor Standards Act (FLSA) were slated to go into effect. Those changes doubled the federal, annual minimum threshold for exempt positions to $47,476 ($913 per week) with automatic updates every three years. The rule was announced by the U.S. Labor Department in May.

Today, however, a federal judge hit the pause button on the new changes. The judge agreed with arguments made in an emergency motion for a preliminary injunction filed by several states. The motion maintained that the Department of Labor overstepped its bounds with the significant increase made to the minimum threshold for exempt employees and the automatic updates.

So, now what?

Some of you have been preparing for these changes for some time and may believe your efforts have been wasted. Others may have been scrambling to meet the deadline and will welcome this news with a sigh of relief. While we do not know the fate of the FLSA changes and their effective date, we do know that compliance remains crucial. Take this time to review your job descriptions, ensure your positions are classified correctly, assess how your compensation structure stands up in the marketplace, and correct your course if needed. Changes or not, deadlines or not, compliance is always the best idea.

For more information, please see this article.

Foraker will continue to monitor this issue. If you have questions, please call us.