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New Overtime Rules Likely to Have Major Impact

May 19, 2016 10:24 PM
The new overtime rules recently released by the U.S. Department of Labor will significantly increase the number of Hopkins House employees eligible for overtime pay.  Hopkins House currently employs 87 professionals, 45 of which were previously eligible for overtime pay. Under these new rule, which take effect Devember 1, 2016, 34 additional employees will be eligible for overtime, bringing the total to 79 employees - 90 percent of the organization's entire workforce.

"We are studying these new rules carefully to assess the potential impact," says Alvin Butler, Jr., Chief Operating Officer. "They may be significant for a nonprofit organization of our size, particularly given the after hours work often required for us to be compliant with certain child care mandates like professional development."

The new rules offer a few options for employers to hold down costs but, according to Butler, these options are not necessarily feasible for Hopkins House. Limiting employee working hours, for example, could conflict with the staff-to-child ratio. Raising salaries, while desirable, would increase tuition costs, adding to the financial burden on families already struggling to pay the rising cost of quality child care for their children.

Click here for a summary of the new rules: Rules