The US Department of Labor has set new rules and regulations
defining the exemption for Executive, Administrative and Professional
employees. The key part of the rule that
could impact our home health and hospice clients concerns raising the standard salary
level that could exempt some employees from overtime from the current pay of
$455 per week to $913 per week (Annualized rate from $23,660 to $47,476). This means if an employee was salaried and
makes less than the $913 per week or $47,476 per year, you will also have to
pay overtime at 1.5 times their hourly rate for any hours worked in excess of
40 hours per week.
They have added for the first time that employers will be
able to use nondiscretionary bonuses and incentive payments including
commissions to satisfy up to 10 percent of the standard salary level. To be allowed as part of the standardized
salary level the bonuses must be paid at least quarterly.
The net effect of the rule is that employees who meet all
other duties and requirements to be salaried employees and make less than $913
per week or $47,476 per year will be subject to overtime rules. This rule goes into effect December 1st
2016.
Link
https://www.dol.gov/whd/overtime/final2016/overtime-factsheet.pdf
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