In less than six months, providers could face paying a lot more overtime wages, thanks to a new government rule.
Employees currently are not eligible for overtime if they make an annual salary higher than $23,660 and have certain duties. The salary threshold will rise to $47,476 on Dec. 1.
Industry experts had expected some kind of increase, but not such dramatic scaling.
“Without corresponding increases in federal and state funding for the services LeadingAge members provide, many will be hard pressed either to raise salaries to meet the new thresholds or absorb the additional overtime costs,” said Jennifer Hilliard, director of philanthropy and legal affairs for LeadingAge.
The American Health Care Association called the Department of Labor announcement “drastic” when it was announced in mid-May.
“We had hoped for more incremental changes to the overtime regulations,” said Greg Crist, senior vice president of public affairs at AHCA, in a statement to McKnight’s.
From the July 01, 2016 Issue of McKnight's Long-Term Care News
