!
ATTENTION:
As this issue was going to print, a federal court blocked the new Department of Labor rules via a
preliminary injunction. The nationwide injunction — issued by a Texas judge November 22 —
halted implementation of the regulations indefinitely until a final decision is made. Stay tuned to the
PDA website, eNews Update and the next issue of the PDJ as more information becomes available.
ARE YOU READY
FOR THE NEW
REGULATIONS?
By Michael J. Crocenzi, Esq.
The new federal overtime regulations take effect
December 1, 2016. You should act soon to determine
if the regulations affect you or your dental practice and
if so, have a plan in place to ensure your compliance.
For an employee to be exempt
from overtime pay, the employee
must: (1) be paid on a salary
basis that is not subject to
reduction based on quality or
quantity of work; (2) be paid a
minimum salary as defined in
the regulations; and (3) have
primary job duties that fall into
either the executive, administrative, or professional exemption
categories as defined by the
regulations.
The new regulations only
change the minimum salary
requirement. However, you
should first determine if the
employee falls in the executive,
administrative, or professional
exemption categories. Dentists
are considered “learned
professionals” and fall into the
professional exemption.
However, dental hygienists
require more scrutiny. Dental
hygienists may be exempt as
“learned professionals,” but they
must complete four academic
years of pre-professional or
professional study approved by
the Commission on Accreditatio n
of Dental and Dental Auxiliary
Educational Programs of the
American Dental Association.
Office managers may qualify for
the administrative exemption if
they perform office or non-manual
work directly related to the
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management or general
business operations of the
employer or the employer’s
customers. Additionally, for the
administrative exemption to
apply the employee’s primary
duties must include the exercise
of discretion and independent
judgment with respect to matters
of significance. Common
examples would include the
ability to hire or fire employees,
to select supply vendors, and
to select billing software. It is
unlikely any of your employees
would fall into the executive
exemption, which requires the
employee to manage the
enterprise or a division of the
enterprise and supervise at least
two full-time employees.
Generally, this position would
be held by the dentist owner(s).
In some large group practice
settings or multi-site practices
the executive exemption may
be available.
If an employee is paid on a
salary basis and falls into either
the executive, administrative,
or professional exemption
categories, then you must
consider the new overtime
regulations regarding the
change in the minimum
salary level.