DOL Plans to Propose More Flexibility in Overtime Calculations (Different from Overtime Rule)

The U.S. Department of Labor (DOL) has proposed a potential Notice of Proposed Rule Making (NPRM) seeking to update overtime rate calculations so they reflect “changes in compensatory practices and relevant laws.” The White House is currently reviewing the proposal, so this is not yet an official NPRM. ANCOR members who attended ANCOR’s Government Relations Committee retreat in January received a preview of this proposed overtime calculations NPRM during a presentation by DOL staff.

The new calculations rule is of interest to I/DD providers in their function as employers because it could give them more compensation options – such as gym memberships – in the face of funding constraints posed by fixed Medicaid wage rates. This could assist with the retention and recruitment of Direct Support Professionals (DSPs) in the face of a severe workforce crisis affecting the stability of supports that people with I/DD rely upon. 

Specifically, the “Department is interested in ensuring that its regulations provide appropriate guidance to employers offering these more modern forms of compensation and benefits regarding their inclusion in, or exclusion from, the regular rate.  Clarifying this issue will ensure that employers have the flexibility to provide such compensation and benefits to their employees, thereby providing employers more flexibility in the compensation and benefits packages they offer to employees.”

ANCOR will keep members posted if and when this notice of proposed rulemaking is released and details around commenting on it!

Key point: This new proposed rule on overtime calculations is not to be confused with the larger and more expansive proposal to update the DOL overtime rule.