New Overtime Rules

pickledpepperRN · Aug 22, 2004

http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17n_nurses.htm

U.S. Department of Labor

Employment Standards Administration Wage and Hour Division

August 22, 2004

FairPay Fact Sheets by Occupation Under the Fair Labor Standards Act (FLSA)

Fact Sheet #17N: Nurses and the Part 541 Exemptions Under the Fair Labor Standards Act (FLSA)

The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hour worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 in a workweek.

However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempts certain computer employees. To qualify for exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week.

Nurses

To qualify for the learned professional employee exemption, all of the following tests must be met:

The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $455 per week;

The employee's primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment;

The advanced knowledge must be in a field of science or learning; and

The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction.

Registered nurses who are paid on an hourly basis should receive overtime pay.

However, registered nurses who are registered by the appropriate State examining board generally meet the duties requirements for the learned professional exemption, and if paid on a salary basis of at least $455 per week, may be classified as exempt.

Licensed practical nurses and other similar health care employees, however, generally do not qualify as exempt learned professionals, regardless of work experience and training, because possession of a specialized advanced academic degree is not a standard prerequisite for entry into such occupations, and are entitled to overtime pay.

Where to Obtain Additional Information

The Department of Labor provides this information to enhance public access to information on its programs. This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. For more information regarding the Fair Labor Standards Act, visit the Wage and Hour Division's Web site at http://www.wagehour.dol.gov or call our toll-free help line, available 8 a.m. to 5 p.m. in your time zone, at 1-866-4US-WAGE (1-866-487-9243).

U.S. Department of Labor

Frances Perkins Building

200 Constitution Avenue, NW

Washington, DC 20210

jwk · Aug 22, 2004

What is everyones understanding regarding how the new overtime rules will ultimately affect salaried anesthetists who earn > 100k and work significant overtime? I can't seem to make sense of the new law as it pertains to us.

I think in the end, groups that employ anesthetists have to meet a market demand for a total compensation package. The supply is much less than the demand in many places. Those that don't meet that demand will find their anesthetist numbers shrinking. Those that are willing and able to "put their money where there mouth is" will do better than those who attempt to get by cheaply.

Sheri257 · Aug 22, 2004

http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17n_nurses.htm
Registered nurses who are paid on an hourly basis should receive overtime pay.
However, registered nurses who are registered by the appropriate State examining board generally meet the duties requirements for the learned professional exemption, and if paid on a salary basis of at least $455 per week, may be classified as exempt.

Talk about a contradiction. No wonder everybody is confused. :confused:

I posted this on the other thread, but it might also help here. If you live in a state with stronger overtime laws, then this rule doesn't apply to you. If you live in a state with weaker or no overtime laws, like Georgia, then this new rule could affect you:

Here's the link: http://www.toolkit.cch.com/text/P05_4053.asp

Click on your state for relevant overtime info in your area.

:coollook:

charles-thor · Aug 22, 2004

My understanding is mess is that CRNAs, AAs, ect will be exempt from an employer's obligation to provide overtime at the employer's discretion, unless they are protected under a union contract. I would not imagine this would be applied to non-union protected anesthesia providers in the mist of a shortage. Perhaps on the upswing of the cycle (whenever that may occur), will we suffer the ill effects of this absurd bill. My primary concern is that this no longer guarantees the 40 hr workweek for anyone who is exempt from overtime, since they are viewed as salaried employees, and as such are expected to complete all of their assigned work for their salaries. When is the work of an anesthesia provider, or anyone else in healthcare, really complete?

WntrMute2 · Aug 22, 2004

We can all thank "W" for this.

air · Aug 22, 2004

Can this ruling be overturned?

Sheri257 · Aug 22, 2004

Can this ruling be overturned?

I believe it can be overturned by a new administration or congressional legislation. If I'm not mistaken, the Bush administration tried to get this through Congress first but, when that failed, they did it as a DOL regulation.

:uhoh21:

jwk · Aug 22, 2004

We can all thank "W" for this.

Not really. I think as professional employees, anesthetists have been exempt from these provisions for a long time. I don't think that groups were REQUIRED to pay us OT as a matter of law. It's just that a lot of groups use OT to compensate their anesthetists who work longer hours than some others in the group that don't. My group pays OT for anything above a 40hr week. About half of the group works OT, half don't. I know other groups on straight salary regardless of the number of hours worked, but in those groups, either everyone works the extra hours, or there is a salary differential up front for those who take call and those who don't.

Sheri257 · Aug 22, 2004

Here's the regulation itself. Page 11 seems to have the relevant info on the $100,000 question:

http://www.dol.gov/esa/regs/compliance/whd/fairpay/regulations.pdf

"Highly Compensated Employees: An employee with total annual compensation of at least $100,000 is deemed exempt ...."

:coollook:

alatta58 · Aug 23, 2004

Can this ruling be overturned?

John Kerry/John Edwards went on public record stating "They will overturn this law if they are elected-It can be done with the stroke of a pen. Vote Kerry 2004!!:)

alatta58 · Aug 23, 2004

Not really. I think as professional employees, anesthetists have been exempt from these provisions for a long time. I don't think that groups were REQUIRED to pay us OT as a matter of law. It's just that a lot of groups use OT to compensate their anesthetists who work longer hours than some others in the group that don't. My group pays OT for anything above a 40hr week. About half of the group works OT, half don't. I know other groups on straight salary regardless of the number of hours worked, but in those groups, either everyone works the extra hours, or there is a salary differential up front for those who take call and those who don't.

Hi-This law is mandatory here in the USA for the past 50 Years-I refer you to check this out for veracity in the Federal Registry-This law was all the doing of George Bush 2 and his business buddies! Vote Kerry 2004-he stated publicly he will roll it back with the stroke of a pen. Vote Kerry 2004 and send Dubya(bush) back to his texas ranch where hopefully he won't harm the cows. Nurses inform yourself politically-don't rely on watercooler hearsay--:chuckle Vote Kerry 2004!