Various ways of categorizing employees can lead to confusion about whether employees are entitled to overtime (OT) pay when their job tasks are performed beyond standard office hours.
Melanie Lockwood Herman, executive director of the Nonprofit Management Risk Center, noted recently that in December of 2016 a new set of regulations will be issued as part of the Fair Labor Standards Act (FLSA).
To help nonprofits deal with the new rules, the U.S. Department of Labor (DOL) has issued several publications, including a fact sheet on the Overtime Final Rule.
Herman said that several classifications of employees are covered, including:
* Administrative: Positions where the primary duty is the “performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers;” and, Positions where the primary duty includes the exercise of discretion and independent judgment with respect to matters of significance.
* Professional: Positions in which the primary duty is work requiring advanced knowledge, defined by the DOL as “work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment;” Positions in which the advanced knowledge required for the position is in a field of science or learning; and, Positions in which the advanced knowledge required for the position is acquired through a “prolonged course of specialized intellectual instruction.”
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