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Federal HR Changes May Impact Your Practice

Overtime is common in medical practices, so it is important to understand the regulations associated with it. On March 7, the Department of Labor (DOL) announced an overtime update that could impact your practice. The DOL’s proposal raises the salary threshold for exempt employees from $23,660 to $35,308 per annum. This increase would shift the number of employees who are required to be compensated on an overtime basis, increasing it to be required to an estimated one million more Americans.

Unless exempt, employees must receive at least 150 percent of their regular pay for any hours worked above 40. This proposal would potentially move employees out of this category, although it’s important to note that meeting the salary threshold is only one test. The employee’s responsibilities also must comprise primarily of administrative, executive or professional duties. If your practice hasn’t done so lately, it’s an opportune time to seek guidance from your HR consultant/attorney – and/or to conduct audits of exempt status. We will keep you updated on this hot topic. For more information, see here.

About The Author

Elizabeth Woodcock is the founder and principal of Woodcock & Associates. She has focused on medical practice operations and revenue cycle management for more than 25 years. She has led educational sessions for a multitude of national professional associations and specialty societies, and consulted for clients as diverse as a solo orthopaedic surgeon in rural Georgia to the Mayo Clinic. She is author or co-author of 17 best-selling practice management books, to include Mastering Patient Flow and The Physician Billing Process: Avoiding Potholes in the Road to Getting Paid. Elizabeth is a Fellow in the American College of Medical Practice Executives and a Certified Professional Coder. In addition to a Bachelor of Arts from Duke University, she completed a Master of Business Administration in healthcare management from The Wharton School of Business of the University of Pennsylvania. She is currently a doctoral student at the Bloomberg School of Public Health of Johns Hopkins University.

The contents of The Sentinel are intended for educational/informational purposes only and do not constitute legal advice. Policyholders are urged to consult with their personal attorney for legal advice, as specific legal requirements may vary from state to state and/or change over time.

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