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U.S. Department of Labor Releases Noteworthy Overtime Rule

Posted on Friday, May 20, 2016 12:15 PM

The U.S. Department of Labor (DOL) issued the rules for exemption from overtime across the country for Executive, Administrative and Professional personnel, who are paid on a salary fee or basis. The new requirements will heavily impact the health care area, including home care and hospice agencies.

The proposed rule was published in July 2015 by the Administration. However, there have been several changes to the new rule. The current overtime exemption requirements include the following:

1. Increasing the minimum salary level to $913 weekly, rather than the current $455 weekly.
2. An automatic adjustment to the salary level minimum every 3 years.
3. Authorizing bonuses, incentive payments and paid commissions to count towards the minimum salary requirement up to 10% of the minimum amount.
4. An increase from $100,000 annually to $134,000 to the Highly Compensated Employee standard.
5. Maintaining the long-standing “duties test.”

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