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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">FYI – more info about the injunction blocking implementation of the new rules from the DOL regarding overtime from the Nonprofit Association of Oregon.<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> Nonprofit Association of Oregon [mailto:news@nonprofitoregon.ccsend.com]
<b>On Behalf Of </b>Nonprofit Association of Oregon<br>
<br>
<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A">As we alerted you yesterday afternoon, a federal district judge in Texas issued a preliminary <b>nationwide injunction</b> blocking the Dec. 1, 2016, implementation
of new rules from the U.S. Department of Labor (DOL) governing overtime compensation. The ruling stated that the DOL exceeded its authority in making the new rules. Because this is a nationwide injunction, <b>it applies to all states, not just the 21 that
filed a federal lawsuit challenging the rules.</b><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A">At issue is the question of which employees qualify for an exemption from the requirement under the federal Fair Labor Standards Act (FLSA) that most employees
are entitled to time and a half overtime pay for work in excess of 40 hours in a week. The FLSA exempts from the overtime requirement "any employee employed in a bona fide executive, administrative, or professional capacity," often called the EAP or "white
collar" employees. Current regulations require that employees must possess the duties of executives, administrative workers, or professionals and be paid more than a minimum salary. The overtime rule published by the Labor Department in May, and set to go
into effect on December 1, would have more than doubled the existing "salary level test" for exempt white collar employees from $455 per week ($23,660 per year) to $913 per week ($47,476 per year).<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A">Twenty-one Governors and Attorneys General <a href="http://r20.rs6.net/tn.jsp?f=001nCQC5iqlW2_wNSPWzi8y_C6CsM75vBszt5d1CdETXqkoDXg2hGOboSEXWbBvIWDhiKnyYNl4ZkeKGGe7oMOvPkC9kJBJJ64EW7giwfbEMxayhgkXM6XDuugpP1lN4BPkMjSw331K1fv_zOc_kQINvR2HWUB_90wXr8ZZRtIEPaHNFoP9Q0fwz7NWU8v1qeauKr7zYXBecLfe3RN_mQI4Sv2MJMZJbd4SdTtEVkzYwjKgxTV-IIf1b4BlW7m_1-Cq9cthqygzkO_FVvHyktUeyD20q7ARrXu5pFeHLMWQR9g=&c=gSPm0SMjPWdqG7sHoQ541w8T3z0J3IMxti7dOKI7Y_uiqgwt0IXN2Q==&ch=-AdiV1uPc70Ht8lehulPdaqV5_XICUwvrLY48pVlnHneoVYtzf89Tw==" target="_blank">filed
suit in federal court</a> challenging the overtime rule on several grounds. Siding with the states, Federal Judge Amos Mazzant held that the white collar exemption is clearly based on the duties that individual employees perform, and that the Labor Department did
not have the authority to create a different or higher standard. Specifically, he ruled: "Congress gave the Department the authority to define what type of duties qualify [for the overtime exemption] - it did not give the Department the authority to supplant
the duties test and establish a salary test that causes bona fide EAP's to suddenly lose their exemption 'irrespective of their job duties and responsibilities.'"<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A">While this development raises the possibility of delaying or striking down the new rules, the current Administration is likely to appeal, and that appeal could
be heard shortly. The eventual outcome is very unclear at this point. <b>NAO has been consulting with our members, our colleagues like the Idaho Nonprofit Center and the National Council of Nonprofits to better understand and advise you on the ramifications
of this news.</b><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A">Here's a short list of recommendations that we have:<o:p></o:p></span></p>
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<ol start="1" type="1">
<li class="MsoNormal" style="color:#1A1A1A;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo1">
<span style="font-size:11.0pt;font-family:"Arial","sans-serif"">Remember, the Overtime Rule (FLSA) has been <b><u>suspended</u> and <u>NOT eliminated</u></b>. Nonprofits who are unsure about what to do should consider consulting with an HR and/or an attorney
for advice. NAO members have the benefit of 20% off special packages Mammoth HR. Click <a href="http://r20.rs6.net/tn.jsp?f=001nCQC5iqlW2_wNSPWzi8y_C6CsM75vBszt5d1CdETXqkoDXg2hGOboSEXWbBvIWDh9QVFMMhbNL6OzvtJXppt735TJAhejjqx5zmgm02gien4hVngVz77uLqk710S556z2ChpbxilvmcnIZvjk0z_Z4aVetjT-QWA3ab7TO1bEUMXM03gwhJNiLTApUXPQe3hTFuwYXJ9gLyNAeXaZbolfQ==&c=gSPm0SMjPWdqG7sHoQ541w8T3z0J3IMxti7dOKI7Y_uiqgwt0IXN2Q==&ch=-AdiV1uPc70Ht8lehulPdaqV5_XICUwvrLY48pVlnHneoVYtzf89Tw==" target="_blank">here</a> to
learn more.<o:p></o:p></span></li><li class="MsoNormal" style="color:#1A1A1A;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo1">
<span style="font-size:11.0pt;font-family:"Arial","sans-serif"">Nonprofits that have not yet communicated any changes to your staff may want to hold off on implementing changes until the outcome of the legal proceedings is clear. However, you should still be
mindful that the rule has just simply been suspended and continue to plan for changes that may still be coming, or necessary for your organization.<o:p></o:p></span></li><li class="MsoNormal" style="color:#1A1A1A;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo1">
<span style="font-size:11.0pt;font-family:"Arial","sans-serif"">If your organization has already implemented these changes we suggest you consider the reasoning behind making the choice you made. Was it to be sure your employees are fairly compensated for
their work? Was it to remain compliant? Or a little of both? Consider the implications of pulling back your changes in light of this current ruling, in particular if you increased salaries to the minimum threshold or are offering overtime compensation.
Our advice is to leave those changes in place until there is a legal resolution. If the rules are struck down, those organizations can then decide whether to reverse payroll changes and any changes made to staff exemption classification.<o:p></o:p></span></li><li class="MsoNormal" style="color:#1A1A1A;mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo1">
<span style="font-size:11.0pt;font-family:"Arial","sans-serif"">Think about your options over the next few days and don't rush to make any decisions until you can consult with experts and perhaps even discuss options with your board or executive committee if
warranted. <o:p></o:p></span></li></ol>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Arial","sans-serif";color:#1A1A1A">NAO will continue to monitor the situation and communicate additional information as it becomes available. Try to have a calm and restful Thanksgiving holiday
and do not forget about the #Giving Tuesday and #OregoniansGive events next week! Click <a href="http://r20.rs6.net/tn.jsp?f=001nCQC5iqlW2_wNSPWzi8y_C6CsM75vBszt5d1CdETXqkoDXg2hGObocdfS4kio_Hq0-7onv3XHT1Gyn1RVlQ4KJneovO04_QoQsKJyX7Rk74yXxmxvB2rzXiG2pDV55lVP3IoSVk1oYuby0w2af-GX5qgopciYzH2oX6CWnXLmgTtzdqQpNzXPQ==&c=gSPm0SMjPWdqG7sHoQ541w8T3z0J3IMxti7dOKI7Y_uiqgwt0IXN2Q==&ch=-AdiV1uPc70Ht8lehulPdaqV5_XICUwvrLY48pVlnHneoVYtzf89Tw==" target="_blank">here</a> for
more information. <o:p></o:p></span></p>
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