Matt Tipton, owner of HR consulting firm Vanguard Results, was kind enough to speak with us on May 13 about the proposed new new Fair Labor Standards Act (FLSA) regulations that govern salaried employees and who qualifies for over-time.
* We've updated all links below with the May 18 release of the final rule. *
Download notes from Matt's presentation (updated 5/18/16)
Matt wanted to follow up with our attendees:
I realize that the popular view of the upcoming over-time rules and regulations is mostly negative and causing many companies to re-strategize how they do business. That said, I’m excited to see that businesses are beginning to look at the rules and regulations that govern our day to day operations. One of the core parts of my business is helping companies understand what the rules of the game are and how to comply so they can continue to play going forward. Regardless of the changes ahead that have made many of us shake our fists in the air, the reality is that most of us never were and still aren’t in compliance to begin with and the “head in the sand” approach is never the way to go.
Now, it’s also important to know that there are carve outs for certain non-profits based on the size of operation and how business is conducted. The two areas that are listed in the Fact Sheet 14A for Non-profits (above) deal with Enterprise coverage and Individual coverage. Enterprise is specific to $500,000 in revenue per year. That may seem like a large number, but it’s actually easy to get to once you start adding up operational cost and salaries. That said, the $500K must be related to commercial activity, i.e. vet services for a fee, a gift shop, swag for purchase. The $500K does not include donations, member fees, dues (unless they receive a benefit in return). Next up is Individual Coverage, and that is specific to what an individual does in relation to interstate commerce regardless of the amount of business dollars the non-profit engages in. This is where most of the smaller non-profits are going to find themselves being covered by the FLSA or at least individuals within their non-profits will fall into this category. Interstate commerce does include calling, emailing, any correspondence on a regular basis across state lines, and anything related to purchases made across state lines on a regular basis.
An example of a non-profit that would fall outside of both of these areas and not be covered by the FLSA would be an animal rescue that is local to one area without any out of state affiliates that they coordinate with regularly. Their work is strictly charitable, including any vet work that may take place on location, and they mainly operate through donations/contributions.
As part of my discussion with YNPN of OKC, I left everyone with a couple forms to help guide them through what the regulations are currently and what parts of those regulations will change. I’ve provided them here along with my contact info in case you have any questions. I’m happy to make arrangements to come to your place of business and have this conversation. Feel free to ask any specific questions you may have and if interested we can take the next step of putting together a strategy of next steps for your organization.
Thanks again to the great individuals of YNPN of OKC!
11 NE 11th Suite 216G
OKC, OK 73104