A common question Hawaii Employers Council's nonprofit members have had is whether the DOL's Rule raising the salary requirements for exempt white collar employees is applicable to them.  As a general matter, if a nonprofit organization is covered by the Fair Labor Standards Act (FLSA), then it is required to comply with the new overtime exemption requirements.  These requirements include an increase to the salary threshold for positions to qualify as exempt from overtime.  Effective December 1, 2016, the salary threshold will increase from the current rate of $455 per week (or $23,660 per year) to $913 per week (or $47,476 per year) for positions that are exempt under the executive, administrative and professional exemptions.

 

Recognizing that this increase creates unique burdens for nonprofit employers, the Department of Labor has published several resources to further explore impacts and possible strategies for addressing those impacts.  These resources include: