New Overtime Rule: Potentially Little Impact to Home Care Agencies

Posted on Thursday, June 9, 2016 1:14 PM

An increase in overtime benefits for millions of American workers will pressure employers across many industries, but how much it will affect home health agencies is still up for debate.

The Department of Labor (DOL) released its new overtime salary exemption limits effective December 1, 2016.

The rule requirements include the following:
• An increase in overtime exemptions for salaried workers from $23,660 per year, or $455 per week, to $47,476 per year, or $913 per week
• Salaried employees will be entitled to overtime wages

While the rule is expected to affect 4.2 million workers and accumulate up to $12 billion in additional wages for Americans, according to the DOL, the new limit might not have as large of an impact on home health providers after all. This is due to the fact that a majority of workers are paid on an hourly basis.

However, home care agencies are encouraged to plan ahead and establish ways to track hours for their salaried workers.

Home health providers can fulfil the new rule and decrease their exposure to added costs with the following insights:
• Pay overtime rates
• Raise workers’ salaries above the new threshold
• Limit workers’ hours to 40 per week or engaging in a combination of those options

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