Comments on Overtime Rules

Below is an excerpt. Download the full 7-page PDF at the bottom.

Melissa Smith
Director of the Division of Regulations, Legislation, and Interpretation
Wage and Hour Division
U.S. Department of Labor Room S-3502
200 Constitution Avenue
NW Washington, DC 20210

RE: Request for Information: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees

Dear Ms. Smith:

Thank you for the providing the opportunity to offer comments in response to the Request for Information (RFI) published by the U.S. Department of Labor on July 26, 2017. The North Carolina Center for Nonprofits (the Center) is providing comments on the potential impact of future rulemaking on 501(c)(3) nonprofits in North Carolina.

1. In 2004 the Department set the standard salary level at $455 per week, which excluded from the exemption roughly the bottom 20 percent of salaried employees in the South and in the retail industry. Would updating the 2004 salary level for inflation be an appropriate basis for setting the standard salary level and, if so, what measure of inflation should be used? Alternatively, would applying the 2004 methodology to current salary data (South and retail industry) be an appropriate basis for setting the salary level? Would setting the salary level using either of these methods require changes to the standard duties test and, if so, what change(s) should be made?

In our communications with North Carolina nonprofits about the 2016 Overtime Final Rule, the Center consistently heard that that the existing salary threshold of $455 is too low and should be updated at least to reflect inflation. The nonprofits that communicated with the Center generally gave two reasons for their conceptual support for raising the salary threshold. First, many nonprofits provide services to working-class families and have seen that long working hours and low wages are a significant root cause of many problems in their communities – problems that their organizations are often working to solve. Raising the salary threshold – and thereby either increasing wages or reducing working hours – would alleviate many of these problems and thereby help their nonprofits better meet their missions. Second, many ...