On Wednesday, May 18th, The Department of Labor (DOL) released a final regulation implementing changes to the Fair Labor Standards Act’s overtime requirements. The final rule raises the salary threshold for exemption from wage and overtime requirements of employees who primarily perform executive, administrative, or professional duties. The rule will raise this threshold from $23,660 to $47,476 per year for salaried workers and is effective December 1, 2016. DOL also includes a provision to automatically update this threshold every three years.
DOL also announced that they will not enforce the new requirements for Medicaid-funded services provided to individuals with intellectual or developmental disabilities who live in residential homes or facilities with 15 or fewer beds. This nonenforcement policy is effective from the rule’s effective date (December 1, 2016) until the end of the HCBS Settings Transition period (March 17, 2019). ADvancing States notes that the DOL nonenforcement period only applies to providers of Medicaid-funded ID/DD services, and will not apply to services for older adults, people with physical disabilities, behavioral health conditions, or traumatic brain injuries, among other groups. Similarly, the nonenforcement period does not apply to other government programs, such as OAA or state-only HCBS programs.
For more information on the rule, including links to the rule itself, factsheets, and FAQs visit: https://www.dol.gov/whd/overtime/final2016/