Home care agencies may need to re-evaluate their compensation models in light of a new U.S. Department of Labor final rule that increases the minimum salary requirements for overtime exemptions for professional and executive personnel to $47,476 a year — $913 a week. That’s up from $23,660 a year — $455 a week.
The rule, which was finalized May 18 and takes effect Dec. 1, will have a major impact on home care and hospice, according to the according to the National Association for Home Care & Hospice (NAHC).
The Obama administration has previously expressed concerns that individuals earning less than $24,000 per year were being required to work extensive extra hours without compensation, NAHC says.
Many home care agencies pay professional clinical staff a base salary equivalent to the minimum exemption level and add compensation on a per-visit basis. NAHC has expressed concern that if the salary minimum were to be raised significantly, some home care agencies and hospices would be deterred from using this compensation method effectively.
According to the rule, the salary threshold will be adjusted every three years.