Clarifications on the DOL Overtime Exemption Final Rule

​As you are likely aware, the Department of Labor Overtime Exemption Final Rule was issued last week. INARF and our partner organizations are working to clarify some issues included in the rule that will impact member agencies. 

Included below are the highlights from the Rule:

    • The salary threshold has been increased from $22,000 to $47,476 per year ($913 per week)
    • The effective date is December 1, 2016
    • There is an auto-update mechanism included in the rule which would increase the salary threshold to a projected $50,000 in 2020

In addition to the information included above, the Department of Labor included a Non-Enforcement Policy in their guidance. This is merely an internal policy and is not part of the Rule, and therefore can be changed at the Department’s discretion. Included in the policy is the following guidance: 

    • The policy applies to Medicaid-funded services for individuals with intellectual or developmental disabilities in residential homes and facilities with 15 or fewer beds 
    • Employees providing non-residential services are not covered in the policy 
    • The deadline for the non-enforcement policy is March 2019 
    • The policy does not prohibit private lawsuits from employees 
    • The policy does not prohibit states from adopting rules to enforce the FLSA

INARF will continue to provide members with information as it is received. We are working with our federal partners to ascertain additional guidance regarding the Rule.

Please feel free to contact us with any questions you have.