The U.S. Department of Labor recently issued a new rule expanding eligibility for overtime pay.
Eight notes for dentists:
1. The rule, issued April 23, raises the minimum salary threshold for certain overtime exemptions under the Fair Labor Standards Act.
2. Employees earning less than $43,888, or $844 per week, will now be eligible for overtime pay.
3. The new rule represents a 23.3% increase over the current salary threshold of $35,568, or $684 per week.
4. The Labor Department was previously considering raising the salary threshold to $55,068, or $1,059 per week.
5. The American Dental Association urged the Labor Department to reconsider that proposal based on the significant economic impact it could have on dental practices.
6. The ADA said May 2 that the new rule would make dental assistants, dental laboratory technicians and administrative staff eligible for overtime pay based on average annual wages for these roles.
7. While the new rule goes into effect July 1, the minimum salary threshold will increase again to $58,656, or $1,128 per week, beginning Jan. 1, 2025.
8. The earnings thresholds will also be updated every three years beginning July 1, 2027, to keep up with changes in worker salaries.