Governor exceeds authority by promulgating executive order placing salary caps on nonprofit organizations

New York State Justice Thomas Feinman has rejected New York Governor Andrew Cuomo’s executive regulation issued by the New York Department of Health on use of funds and executive salary caps in certain nonprofit organizations.  The judge stated that Gov. Cuomo exceeded his authority when he enacted the executive order that launched the regulations.  The controversial regulations primarily applied to New York based charities and those receiving funding from New York State but were thought to be yet another effort to regulate the authority of Boards of Directors of independent nonprofit organizations to determine the compensation of their officers and their methods of operation.

Agencies for Children’s Therapy Services, Inc. v. New York State Department of Health, 15763/12, NYLJ 1202650501818, at *1 (Sup., NA, Decided April 8, 2014)