"Learned Professionals": A Narrow FLSA Exemption For Healthcare Organizations

Written exclusively for ChubbWorks for Not-for-Profit Zone

An investigation by the U.S. Department of Labor's Wage and Hour Division (DOL) found that a South Carolina healthcare employer violated the Fair Labor Standards Act (FLSA) when it failed to pay appropriate overtime wages.

According to DOL investigators, the employer classified its occupational and physical therapist assistants as exempt from overtime. However, the investigation found these employees did not satisfy the FLSA's criteria for an exemption as "professionals". As a result of being treated as exempt, the employees did not receive the correct wages for overtime hours they worked.

The DOL recovered nearly $140,000 in back wages for 29 affected employees. "US Department Of Labor Recovers $139K In Back Wages For 29 Employees Wrongly Exempted From Overtime By Spartanburg Home Healthcare Employer" www.dol.gov (Nov. 20, 2023).

 

Commentary and Checklist

 

Few healthcare workers are considered exempt.

In general, only physicians qualify as FLSA "learned professionals".

There are special rules for nurses, depending on specific factors, and other healthcare workers – such as the occupational and physical therapy assistants in the above case - are considered nonexempt.

What are some best practices for avoiding wage and hour issues?

·  Have your legal counsel/HR conduct a wage and hour audit of all jobs in your organization to check for proper overtime designations.

·  Have and enforce written policies regarding EEO and wage and hour issues.

·  Train managers and employees on these policies.

·  Have multiple reporting methods for alleged violations.

·  Respond promptly to every allegation, regardless of whether you think it has merit or not.

·  Investigate all allegations.

·  When violations are found, take remedial steps, and document your efforts.

·  Work with your legal counsel when violations of the law are alleged.

 

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