The Council has issued the following advice to organizations that face increased costs from the FLSA Overtime Final Rule. How is a nonprofit going to maintain the same level of services to the public pursuant to government grants and contracts when its costs are likely to go up when it implements the Overtime Final Rule but its reimbursement rate is not? The Labor Department, in its materials explaining the change in employment rules, seemed to acknowledge the challenge for “organizations for which some or a significant amount of funding comes from government or private grants of set amounts.” The Labor Department has offered assurances that future grants and contracts from that federal agency will adjust reimbursement rates to recognize the new overtime requirements. It was also revealed at a congressional hearing… Read more »

