U.S. Department of Labor Issues Final Overtime Rule
U.S. Department of Labor Issues Final Overtime Rule
The U.S. Department of Labor (U.S. DOL) issued the final FLSA overtime rule which will make nearly 1.3 million workers eligible for overtime pay. In the announcement published yesterday, the DOL finalized the first updates to the Fair Labor Standards Act (FLSA) in fifteen years. This ends a several-year battle over the adjustments to the FLSA which have continued since they were initially published in 2015 during the Obama Administration. The new rules become effective on January 1, 2020, which will give employers a few months to prepare.
The changes to the FLSA include updates to the standard salary level for each of the exemptions to the overtime provisions. Under the new rule, the minimum salary threshold would increase from the current level of $455 per week ($23,660 per year) to $684 per week (equivalent to $35,568 per year). In addition, the Highly Compensated Employee (HCE) salary level is increasing from $100,000 to $107,432 annually. Also, the rule permits incentive pay and bonuses to count towards up to 10% of the standard salary level provided it is paid at least annually.
These changes will require that employers conduct an analysis of any position in their organization that they believe are exempt from the overtime provisions of the FLSA. We recognize that most EMS agency’s workforce is paid on an hourly basis. However, it is still important for agencies to conduct an FLSA analysis of all positions to ensure compliance with the FLSA. This analysis should include determining if the position meets the salary basis, salary level, and the job duties tests necessary to be exempt under the law. The change to the salary level may require that employers now pay overtime wages to previously exempt employees or adjust the employee’s salary to the new level.
The US DOL has numerous resources and tools to assist employers with complying with the FLSA. These resources can be found on the DOL website. The American Ambulance Association can assist our members with evaluating how these changes might impact your organization. We will be sure to provide our members with further information and guidance, as it becomes available, regarding this or any other Human Resource or employment related issue that will impact the ambulance industry.
