Proposed overtime rule change bad for non-profits

Talk to nearly any non-profit under $1 million in revenue and find a very low number of exempt staff earning above $50,440. Yet, the Obama administration believes this should be the new threshold for non-exempt employees. 

The President is claiming that since the 1970’s United States companies have eroded overtime for workers by moving more to exempt status and working them over 40 hours per week. Read the FACT SHEET: Middle Class Economics Rewarding Hard Work by Restoring Overtime Pay.

Smaller non-profits until $250,000 in annual revenue often have no employees, not even the executive director, that make over the proposed minimum of $50,440.

According to a recent article from the US Chamber of Commerce, this is simply untrue and will cause many non-profits to scale back operations or eliminate overtime and reduce pay for employees. The Proposed Overtime Regulation Threatens Nonprofits and State, Local Governments article outlines comments from many larger national non-profits, including the Salvation Army, YMCA, Boy Scouts and others.

The Fountain Hills Chamber of Commerce is joining the East Valley Chambers of Commerce Alliance (EVCCA) to survey members and take action. While we support the ability of employees to earn fair wages we do not believe this severe of a change will be effective for businesses or the workforce.