[MainstreetManagers] DOL labor pay stuff

[Kelli Yadon]

Good afternoon.

Been watching a lot of webinars...and I was reminded that there are three "tests" to determine if they are exempt. And all three have to be met to qualify for exemption from overtime. In a nutshell for our nonprofits.

Salary level test - which is the amount/rate of pay

  *   If under the threshold, then yes they qualify for overtime
Salary basis test - how are they paid?

  *   If paid an hourly wage, they qualify for overtime whether it hits threshold amount or not. Because their amount could vary and not be considered salary. One month it could hit threshold, next month more, next month less.
Duties performed test
White collar portion:

  *   Executive - are you supervising at LEAST two employees? Among other things.
  *   Administrative - not the person ordering supplies for the office, but maybe the director that doesn't have staff yet. Does this person have the ability to violate organization policy without asking? If the answer is yes, they probably fall under administrative and qualify for exemption from overtime.
  *   Professional exemption - people that had to go to prolonged school to do the job - lawyer, doctor, therapist, etc. Or folks involved with art endeavors - music, graphic designer, etc.
  *   And I don't think we have to worry about the highly compensated folks.

If all three tests are met, they are exempt:

Compliance options:

  *   No change - and possibly get sued
  *   Raise salaries
  *   Pay overtime

Here is a good webinar. You may have already seen it.  (use password Sconnection1): https://vimeo.com/showcase/10374355<https://urldefense.com/v3/__https:/vimeo.com/showcase/10374355__;!!NZFi6Pppv9YRQw!qCfd6tdXhV0f9vRk8N1KKwclQuchxtVdfJGiywQj-WAb_6Uh8S2LfcWA8IJmCncsx2PZjxCmD1HcT00xC25q-8fjCkcs$>. It is the third video on the left with Topic: Department of Labor's Overtime Rule Speaker: Alex Towler-Bliss, CEO of Culture Connection Law.

I hope this helps. We still haven't heard if it will increase again or not with the new administration.

kel
From: Tamara Nelson <Tamara.Nelson at okcommerce.gov<mailto:Tamara.Nelson at okcommerce.gov>>
Sent: Wednesday, October 16, 2024 1:31 PM
To: Kelli Yadon <Kelli.Yadon at okcommerce.gov<mailto:Kelli.Yadon at okcommerce.gov>>
Subject: Fw: [EXTERNAL] New DOL rules for non profits



Tamara Nelson
Economic Development Specialist
Oklahoma Main Street Center
405-778-9321 (text capable)
________________________________
From: Ardmore Beautification <abc.ardmore at gmail.com<mailto:abc.ardmore at gmail.com>>
Sent: Wednesday, October 16, 2024 1:29:43 PM
To: Tamara Nelson <Tamara.Nelson at okcommerce.gov<mailto:Tamara.Nelson at okcommerce.gov>>
Subject: [EXTERNAL] New DOL rules for non profits

Hi Tamara:
Just curious if you have had any clarification on non-profit rules from DOL literature.
Or has Kelly got some info?

I did read from the National Council for non profits and the OCNP's information regarding the new rules and it still is very confusing.  It does reiterate the information regarding non-profits who do business over $500,000 and also if the non-profits is not in substantial competition with others, that they would be exempt.  But further language says to comply with DOL.

We are moving forward with the regulations from DOL but it sounds like others have challenged these rules previously.

Thank you for any information you can provide.

JULIE

--Julie Maher
Executive Director
Ardmore Beautification Council
(580)   223-2230 (office)   (580) 465-1155 (cell)
"A Beautiful City is Good Business!"

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