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The Department of Labor increases salary requirements for overtime

The Department of Labor’s (DOL) final rule, issued this week, increases minimum salary requirements for overtime exemptions to $47,476 a year, or $913 per week. The rule will take effect December 1, 2016. The new overtime rule will:

  • Raise the salary threshold indicating eligibility from $455/week to $913 ($47,476 per year), ensuring protections to 4.2 million workers.
  • Automatically update the salary threshold every three years, based on wage growth over time, increasing predictability.
  • Strengthen overtime protections for salaried workers already entitled to overtime.
  • Provide greater clarity for workers and employers.

What does this mean for SNFs? A Long-Term Living article from summer 2015 recommended that facilities prepare for the new law by doing the following:

  • Review all job descriptions
  • Perform a detailed review of all “exempt salaried” positions
  • Review all policies related to time worked and time paid
  • Audit time clock in-and-out compliance (audit through calculation of paychecks)
  • Consider the pros and cons of current and future full-time and part-time positions

To read the full rule, click here.