Get Ready: Overtime Threshold Rule Coming in 2016

November 24, 2015 LeadingAge DC Executive Director

The U.S. Department of Labor’s final rule on overtime eligibility won’t go into effect until late 2016. This rule would increase the salary cap for who is eligible for overtime pay from $23,600 per year to $50,400 per year and automatically increase it every year to prevent the level from becoming outdated. The delay is due to the complexity of the change and the large volume of comments the proposal drew. Approximately 270,000 individuals and organizations submitted comments on the proposed change – more than three times the amount received when the rules were last modified in 2004. We recognize the implications on members that are presented by the proposed rule. Many members have exempt employees such as administrators or home managers with a salary above $23,660 but below $50,440. You should be considering the financial and organizational changes of the salary threshold potentially doubling. We will keep you posted on the final overtime rule as well as its implementation date.