home > News and Publications > Publications
New Overtime Rules: Medical Practices Must Comply
Posted on: 6/9/2016

overtime web

In less than six months, new federal regulations affecting many medical offices and health professionals will be upon us. The U.S. Department of Labor (DOL) recently issued a final rule to update overtime regulations, which will take effect Dec. 1, 2016.

Once implemented, more workers will automatically become eligible for overtime pay when they work more than 40 hours a week.

What’s more, the DOL has predicted that health care workers will make up the bulk of those affected – which means you will most likely be affected if you have employees.

The regulations will apply to most hourly and salaried workers, but also to some white collar employees whose salaries and duties currently exempt them from the overtime pay requirements.

For example, a white collar worker may be earning above the current salary threshold, but his or her “duties” do not meet the exception for executive, administrative or professional workers – the kind of job meant to be excluded from overtime protections. Therefore, he or she will become eligible for overtime pay.

In a nutshell, the new rule will:

  • Raise the salary threshold from $455 per week to $913 ($47,476 per year).
  • Entitle more salaried white collar workers to overtime pay; those earning less than $913 per week, or $47,476 a year, will now be eligible.
  • Automatically update the salary threshold every three years based on wage growth over time.
  • Strengthen overtime protections for salaried workers already entitled to overtime.
  • Provide greater clarity for workers and employers.

The DOL has provided suggestions for those employers who do not wish to pay overtime, raise employee salaries or reduce overtime hours. Employers might consider lowering base salaries to compensate for the increased overtime pay.

Practices should consult with private counsel regarding these complex labor issues.

For more information, check out these DOL webpages:

Overtime rule

Overview and summary

Full details and guidance

Questions? Call the ISMS Division of Member Advocacy at 800-782-4767 ext. 1470 or send an email.

View Full Site View Mobile Site