The Labor Department's proposed overtime rule could cost disability service providers $1.05 billion in additional costs, according to an Avalere Health analysis released by ANCOR, the national provider association, and reported by Disability Scoop on Nov. 13, 2023.
What the rule proposed
The department proposed on Sept. 8, 2023, to require overtime pay for most salaried workers earning less than about $55,000 a year who work more than 40 hours a week. Officials said about 3.6 million workers nationwide would be affected. Many front-line supervisors and program managers in disability services are salaried at pay near that level.
What providers said
In an ANCOR survey of 700 providers across 45 states, one-third said they would need to eliminate positions if the rule took effect. Sixty-one percent said they would convert salaried staff to hourly, and almost half said they would restrict overtime. Because Medicaid sets most provider rates, agencies said they could not simply raise prices to cover the cost.
Why this mattered for providers and DSPs
Frontline supervisors often cover open shifts during staffing shortages. Converting them to hourly pay or capping their hours could leave gaps in coverage for DSPs. The department finalized the rule in April 2024, but a federal court in Texas vacated it nationwide on Nov. 15, 2024.