Many nonprofits misclassify their employees’ status, either due to confusion or inadvertently. Many operations are being closely scrutinized for any violations of the law. Here is some important information from The National Council of Nonprofits that will help you to understand the guidelines in classifying your employees. Better yet, check with your accountant to make sure that you comply with the laws, before the situation creates a nightmare for you and your organization.
The National Council of Nonprofits encourages all nonprofits to take the time to determine the right classification for each employee, and include either “exempt” or “non-exempt” on each job description. Many nonprofits assume that whenever they pay someone a “salary” that automatically makes the worker exempt from overtime. This is not the case. Exemptions are dependent upon job duties as well as how much is earned. Featured Hot Topic: Classifying Employees Correctly | National Council of Nonprofits
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