Home Health & Hospice Week
New Overtime Rule Could Affect Your Agency
DOL more than doubles OT salary threshold.
The overtime hits just keep coming to home care providers.
After losing the companionship exemption to minimum wage and overtime laws, home care providers now have to deal with a much higher salary threshold for OT. On May 18, the Department of Labor finalized a rule to raise the threshold from $455 per week ($23,660 per year) to $913 per week ($47,476 per year). The standard will take effect Dec. 1.
Plus: The DOL will update the salary threshold every three years beginning in January 2020, the DOL says in a fact sheet. “Based on projections of wage growth, the threshold is expected to rise to more than $51,000 with the first update,” the White House says in its own fact sheet on the rule.
DOL proposed the rule in the July 6, 2015 Federal Register.
The increase, “while less than what was proposed in 2015, will have a huge impact primarily on small to medium-sized agencies,” predicts attorney Eileen Maguire with Gilliland, Maguire & Harper in Indianapolis.
Your job now: Agencies should “evaluate current salaries and job duties under the current tests to determine which employees truly qualify for the exemption and whose salary you can afford to increase to maintain the exemption,” Maguire advises.
Links to the rule and related materials are on the DOL’s site at www.dol.gov/featured/overtime.
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