US Department of Labor Proposes Overtime Rule
July 1, 2015 09:38 AM
The US Department of Labor on Monday announced a proposed rule that would extend overtime pay to nearly 5 million workers, raising the overtime exemption threshold from a yearly salary of $23,660 to $50,440.
Currently, the salary level under which administrative, executive, and professional employees are eligible for overtime compensation is $23,660 per year, or $455 per week on a salary or fee basis. For fee-based compensation, eligibility is determined by calculating whether the fee payment rate would amount to the minimum salary if the employee worked 40 hours per week. The new regulation changes the annual salary for overtime eligibility to $50,440 per year, or $921 per week on a salary or fee basis.
According to a press release by the Department of Labor, the proposed rule additionally provides “further clarification” about which employees are eligible for overtime.
The National Association for Home Care & Hospice’s (NAHC) regulatory affairs staff is currently analyzing the 295-page rule to determine its impact on home care and hospice. NAHC’s initial reading is that the new rule might have an impact on home care and hospice, depending on the rule’s application of standards to per-visit compensation which has previously fit into the fee basis for professional services.
As part of the rule-making process, the proposed rule will be subject to a public comment period but the dates for the comment period have not yet been released. When the notice of proposed rulemaking is published in the Federal Register, it will include the official dates during which the public can comment for the official record. The proposed rule can be read here.
Please stay tuned to NAHC Report for further analysis of the proposed rule and its impact on home care and hospice.