How will new overtime pay regulations impact Indiana nonprofits?
New regulations on overtime pay (part of the Fair Labor Standards Act) took effect on December 1, 2016. These regulations require mandatory overtime pay for employees earning less than $47,476 per year. The full impact of these new regulations on nonprofit employers in Indiana is likely to be significant, despite special accommodations for small charities.
Drawing on data from our extensive analysis of nonprofit paid employment in Indiana, survey data from Indiana nonprofits, and basic financial indicator data, we find strong evidence that the new regulations are likely to present significant challenges to nonprofit organizations in Indiana and elsewhere. Given the precarious financial constraints of many charities, the new overtime pay requirements threaten the ability of charities to provide many essential services and/or make a range of significant contributions to the quality of life in local communities.