Posted on Monday, September 30, 2019 12:54 PM
This week, the United States Department of Labor announced a final rule that will allow 1.3 million workers to be eligible for overtime pay under the Fair Labor Standards Act (FLSA). This will go into effect on January 1, 2020.
This rule will update the earning thresholds needed to exempt employee’s from FLSA, this is the first update to these thresholds since 2004.
“According to this final rule, the Department of Labor will:
- raise the “standard salary level” from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker);
- raise the total annual compensation level for “highly compensated employees (HCE)” from the currently enforced level of $100,000 to $107,432 per year;
- allow employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices; and
- revise the special salary levels for workers in U.S. territories and in the motion picture industry.”
Source: NAHC
About Corridor
Corridor is the nation’s preferred partner and trusted business advisor to home health and hospice providers, providing quality services and impactful results for 30 years. Focusing on key operational, regulatory and financial challenges, Corridor delivering industry-unique solutions and deep expertise in coding, clinical documentation review, compliance, billing and collections , consulting and provider staff education . At Corridor, we make the business of caring for people Better! For the most important industry updates and news that impacts home health and hospice, please make sure to sign up for our weekly newsletter to receive the latest up-to-date industry information direct to your inbox!
For additional information, please contact Corridor at 1-866-263-3795.
