The New York Department of Heath passed regulations capping executive pay at $199,000 in non-profits that receive state funding. While many supporters argue that this cap helps prevent overspending and misspending of tax dollars, others see it as unfairly interfering with non-profits’ operation and strategic decision-making, specifically where an organization seeks exceptionally qualified executives to lead.
The Department’s regulations, which allowed charities to apply for a waiver, had gone into effect in May 2012. Subsequently, a lawsuit was brought by the Agencies for Children’s Therapy, a non-profit that represents over 30 agencies that provide services to more than 25,000 children in New York. The key aspects of this litigation are as follows:
- In a setback for New York Governor Andrew Cuomo’s efforts to cap salaries of executives working for state-funded non-profits, Nassau County Supreme Court Judge Thomas Feinman tossed out the Department of Health’s regulations.
- Judge Feinman ruled against the Department, concluding that the administrative agency had overstepped its boundaries. Administrative agencies do not have the ability to legislate law. That is the proper role of the state legislature. Rather, agencies enforce laws and promulgate regulations in accordance with legislation.
- Judge Feinman noted that the legislature had indeed considered proposals capping executive pay within non-profits and it had rejected them. Administrative agencies cannot use regulations as a backdoor method of passing legislation that was unsuccessful in the legislature.
For more information regarding any aspect of labor and employment law, consult with an experienced attorney who can provide skilled legal guidance. Call us at 800-807-2209 for a free consultation.
- Why Don’t Most Employees Report Misconduct at Work? - July 20, 2021
- Get the Best New York City Sexual Harassment Lawyer Near You - May 20, 2021
- 6 Pregnancy Rights You Need to Know - April 20, 2021
- Sex for Rent Schemes Hit Low-Income Renters - February 3, 2021
- Know your rights: Can you get fired if you refuse to take the COVID vaccine? - February 2, 2021
- How to Find an Experienced Sexual Harassment Lawyer in Los Angeles - February 2, 2021
- 6 Ways to Take Time Off When Emergency Leave Expires - December 24, 2020
- 12 Ways Sexual Harassment Targets Work from Home Employees - November 19, 2020
- Black Women Golfing Leads to Race Discrimination - November 16, 2020
- 5 Signs to Identify Child Sexual Abuse - October 13, 2020
