Daily Update May 20, 2016

DOL Revision of OT (recap and request)
 

You have probably heard by now the Department of Labor sent out a ruling on revised OT that will go into effect on Dec. 1 of this year, 2016.  We have previously sent out numerous communications, some of them repeated below, on this issue.  
Laura Boyd (communication #4 below) indicates that there still may be some relief for providers relying on Medicaid.  There is work currently being done to try and get more clarification on delays for those providers so stay tuned.  In the meantime I recommend you become familiar with the ruling and determine how best your organization should react (see #s 3 and 6 below for some guidance).  
Also, Together Georgia needs all of you that will be fiscally impacted to send us your impact analysis so that we can begin to educate the Office of Planning and Budget and the Legislative Appropriation's members.  Please send us the projections for how this ruling might increase your expenses for calendar year 2017.  Once we get a sizable response we will attempt to determine what the reasonable cost will be for all Georgia providers.  Please try and get us these numbers by June 1 [respond via Survey Monkey at https://www.surveymonkey.com/r/KGBBXPNLet us know if you have further questions or need additional information.  We will keep you informed of any changes or new interpretations of this ruling. 

1. View "Millions more can earn overtime pay" article at http://tablet.olivesoftware.com/Olive/Tablet/AtlantaJournalConstitution/SharedArticle.aspx?href=AJC%2F2016%2F05%2F19&id=Ar00113

2. FFTA Communication 

As you have probably heard, the Department of Labor (DOL) released today the final details on Obama’s Executive Order to revise the White Collar Overtime Rule. The ‘good news’ is that the new regulations will not go into effect until Dec. 1, 2016

 

Please review these links as you plan for changes that will be required within your agencies.

 

https://www.dol.gov/whd/overtime/final2016/overtime-factsheet.htm

https://www.dol.gov/sites/default/files/overtime-nonprofit.pdf

https://www.dol.gov/whd/overtime/final2016/nonprofit-guidance.pdf

https://www.dol.gov/whd/overtime/final2016/nonenforcement-faq.htm

 

While the non-enforcement delay states "This policy extends to providers of Medicaid-funded services for individuals with intellectual or developmental disabilities in residential homes and facilities with 15 or fewer beds. Under the policy, from December 1, 2016, to March 17, 2019, the Department will not enforce the updated salary threshold of $913 per week for this subset of employers", it also states it is meant to help those "who are dependent on Medicaid funding in state budgets, and serve vulnerable populations.”

 

3. Nonprofit guidance PDF 


4. Communication from Laura Boyd - We may have a window! We will need help with interpretation from an attorney and need to work with together with DOL. Looks like they supported the delay in implementation for certain providers who rely on Medicaid. Devil is in interpretation.

https://www.dol.gov/whd/overtime/final2016/nonenforcement-faq.htm

Time Limited Non-Enforcement Policy for a Subset of Medicaid-Funded Providers

3. Q. Who is covered by this non-enforcement policy?

A. This policy extends to providers of Medicaid-funded services for individuals with intellectual or developmental disabilities in residential homes and facilities with 15 or fewer beds. Under the policy, from December 1, 2016, to March 17, 2019, the Department will not enforce the updated salary threshold of $913 per week for this subset of employers.

5. Actual ruling (500+ pages) 

6. Independent Sector is offering the following two-part digital learning series about how to comply with federal overtime rules and how to prepare for potentially major changes on the horizon.

 

Part 1: Is your organization in compliance with the Fair Labor Standards Act? 
May 241:00-2:00 p.m. ET

 

Part 2: What would it mean for your organization if the federal overtime threshold doubles? 
May 311:00-2:30 p.m. ET 

Link to additional information and registration at https://www.independentsector.org/overtime_rules


 

7.Georgia Center for Nonprofits


Yesterday, the long-awaited update to the U.S. Department of Labor’s overtime rules under the Fair Labor Standards Act (FLSA) was released. As expected, there is a substantial increase to the threshold at which eligible employees, regardless of duties, must be paid overtime. GCN will provide resources to the nonprofit community to assist employers with compliance with this rule.

Here are the facts and some resources:

The threshold for paying overtime has been increased from $23,660 to $47,476 per year. This means that most non-exempt organizations will need to pay overtime to employees making less than $47,476 annually for any hours worked in excess of 40 per week. In order to be subject to minimum wage and overtime requirements and thus qualify for the Act’s protections, employees must be “covered” by the FLSA. Coverage under the FLSA is usually achieved in one of two ways: (1) the organization is a covered enterprise; or (2) a particular worker is individually covered. While many nonprofit organizations may not be covered enterprises under the FLSA, most  are likely to have some employees who are covered individually and are therefore entitled to the minimum wage and overtime protections guaranteed by the FLSA.

In addition to adhering to the increased salary threshold, there are numerous other compliance rules and regulations that nonprofits will need to follow.

The date by which employers need to comply is December 1, 2016.

Read the final rule here.


In response to feedback from the nonprofit community that the rule is confusing, the U.S. Department of Labor has issued these fact sheets:

Additionally, GCN and our allies are preparing various resources for nonprofit employers to learn more about FLSA and the new rules. Here are some immediate ways to get up to speed on what you need to know: 

Live Trainings:

Increased costs and record keeping will affect organizations across most nonprofit activity areas, and GCN will continue to raise the unique concerns of nonprofit employers with policy makers to make this transition sustainable for nonprofit employers.

We recognize that this is a substantial change and will require significant adjustment among GCN member organizations. We hope that you find these resources helpful in planning for this transition. If you have further questions, please be in touch with GCN Membership Director Reggie Seay at rseay@gcn.org.

Please visit GCN.org to view all of the resources that GCN will continue to compile about the new overtime rules. We will post videos of upcoming webinars, plus links to additional resources as they become available.


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