Think the Fair Labor Standards Act and Upcoming Regulation Changes Don't Apply to Nonprofits? You're Wrong.
Nonprofits are not exempt from labor and wage regulations simply because they are nonprofits. "Neither the Fair Labor Standards Act (FLSA) nor the Department's regulations provide an exemption from overtime requirements for nonprofit organizations. While some nonprofits may not be covered under the FLSA, it is likely that many employees of nonprofits are entitled to FLSA protections" (DOL). Even if your organization as a whole does not have to comply with FLSA standards (because your business revenues are fewer than $500,000), you probably have individual employees who are eligible for FLSA protections.
Over the next few weeks, we will be providing you with additional information to help you determine your next steps. The information is complicated and important to understand clearly. In the meanwhile, begin having conversations about how these regulations and failure to comply with them might impact your organization.
The hard truth is that many nonprofits contribute to poverty by not paying employees a living wage. The intent of the FSLA and its associated regulations are to ensure that employees are treated fairly. Nonprofits are competing for qualified and skilled employees; complying with FLSA will further help us to attract and retain quality staff.
Have the hard conversations. Make a plan. Call if you need any help.
Here are some resources that might help guide your conversation:
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