The Society for Human Resource Management (SHRM) says new rules on overtime pay pose a risk to charitable organizations as well as businesses.

Elizabeth Hays, a SHRM member and the director of human resources for MHY Family Services, a Pennsylvania-based charity that serves at-risk youth, told the U.S. House Subcommittee on Workforce Protections Thursday that the Obama administration's proposal poses a serious financial threat to her organization because it would force the nonprofit to pay overtime to employees who are currently exempt from overtime pay requirements.

"If these regulations were to be implemented as proposed, MHY will likely have to decrease services because we would not be able to afford the additional overtime pay," she told the committee.

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