(Washington, DC) – The Department of Labor (DOL) today released final rules that dramatically expand overtime eligibility for millions of salaried workers by increasing the salary thresholds required to exempt a salaried executive, administrative or professional employee from federal overtime pay requirements. Maggie Elehwany, Argentum Senior Vice President of Public Affairs, issued the following statement:
“Argentum is deeply disappointed that the Department of Labor adopted a flawed rule that will exacerbate the already dire workforce challenges faced by senior living providers who are still financially struggling as a result of the COVID pandemic. Rather than taking a reasonable approach that factors in current economic conditions and workforce considerations, this new rule will arbitrarily raise the overtime eligibility salary threshold by over 40% beginning January 1 and raise the overtime threshold for highly compensated workers on a regular cycle. These changes seemingly ignore economic considerations and could ultimately and unnecessarily strain an already struggling workforce that are providing excellent care for our nation’s seniors.”
Effective July 1, 2024, the salary threshold will increase to the equivalent of an annual salary of $43,888 and increase to $58,656 on Jan. 1, 2025. The July 1 increase updates the present annual salary threshold of $35,568 in the 2019 overtime rule update. On Jan. 1, 2025, the rule’s new methodology takes effect, resulting in the additional increase. In addition, the rule will adjust the threshold for highly compensated employees. Starting July 1, 2027, salary thresholds will update every three years, by applying “so-called” up-to-date wage data to determine new salary levels.
In comments to the DOL that Argentum submitted jointly with the American Seniors Housing Association last fall upon the initial filing of the proposed rule, both organizations called for the withdrawal of the proposed rule, replaced by rules that would set the salary level no higher than the 20% threshold in the lowest income states, urged the removal of bonus caps to meet exempt status and include safe harbors of unintentional errors, and called for maintaining the current salary threshold for “highly compensated” employees.
Further, we jointly requested the Department work with stakeholders to develop solutions for overtime pay that more closely reflected economic conditions, while also ensuring that senior living providers could continue to provide high-quality care to their residents. We are disappointed that DOL did not accept these recommendations.
Argentum will continue to review the full effects of the new rule with counsel and subsequently provide appropriate guidance.
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About Argentum
Argentum is the leading national association exclusively dedicated to supporting companies operating professionally managed, resident-centered senior living communities and the older adults and families they serve. Since 1990, Argentum has advocated for choice, independence, dignity, and quality of life for all older adults.
Argentum member companies operate senior living communities offering assisted living, independent living, continuing care, and memory care services. Along with its state partners, Argentum’s membership represents approximately 75 percent of the senior living industry—an industry with a national economic impact of nearly a quarter of a trillion dollars and responsible for providing over 1.6 million jobs. For more information, visit www.argentum.org.
Contact:
Michael Keegan Manager
Media and Public Affairs ARGENTUM
703-599-7412 | [email protected]
