Home Health & Hospice Week

You’ve got less than a month to give the DOL your 2 cents.

You don’t have to wait for the final rule bumping up the overtime exemption salary level to take action. Here’s how to prepare:

1. Review the proposed rule carefully to fully understand the proposed revisions. If you have any questions reach out to experienced HR personnel or consult legal counsel.

2. Submit any comments electronically or via the mail to the DOL by Nov. 7.

3. Assess how the changes apply to your current workforce i.e., which employees will still qualify for exemption and which will require reclassification as non-exempt.

4. Review job duties as part of the assessment to ensure employees are properly classified, and check state and local laws to identify state specific precedents that may be higher and any advance notice requirements that may apply for employee wage changes.

Remember: Both the existing rule and the proposal place the burden of establishing exemption eligibility on the employer. Job titles and job descriptions do not determine EAP exemption status, nor does merely paying an employee a salary.

5. Calculate what the impact will be to your labor costs and consider whether pay for some employees can be increased for them to continue to qualify for the exemption.

Be aware: A footnote in the final rule advises that the DOL will use the most recent data available, which may change the dollar figures.

6. Review exempt and non-exempt work policies and procedures such as standard work hours, timekeeping procedures including accounting for time worked at home or while traveling on business, meal and break times, overtime approval, etc. Revise and retrain as necessary.

7. Monitor DOL communications, especially proposed rule comments and responses, to understand any updates or clarifications as you continue to prepare for the final rule.

Final thought: Once the rule is finalized, expect plenty of legal challenges. Regardless of future legal action, now is the time to act to determine the extent of the impact and plan for any change.