Tuesday, March 29, 2016

New DOL Overtime Rule

Urvi Patel and Lindsay Schwartz
Last week, the Department of Labor sent the final rule for Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees to the Office for Management and Budget Review. This final rule will be based on the proposed rule issued last year that calls for an increase in the number of employees who will be eligible for overtime. Specifically, the proposed rule talked about setting the standard salary level at that 40th percentile of weekly earnings for full-time salaried workers. This would effectively raise the exempt salary threshold from $455 a week to $970 a week in 2016. AHCA/NCAL submitted comments opposing this proposed rule stating that there is limited opportunity for long term/post-acute care providers to increase their prices in order to meet the requirements of these proposed changes.

AHCA/NCAL will continue monitoring and updating members on the final rule which is expected to be published in 30-60 days. At this point, it is unclear how much influence the 200,000 comments submitted on the proposed rule will have on the final rule.

Questions regarding this can be directed to Urvi Patel (upatel@ahca.org) or Lindsay Schwartz (lschwartz@ncal.org).

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