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Can healthcare employees waive their right to overtime pay?

No. A covered employee is legally entitled to minimum wage and overtime pay calculated in accordance with the federal Fair Labor Standards Act (FLSA). The employee does not have the power to waive those requirements and the employer cannot demand a waiver of overtime pay.   Many healthcare workers are considered covered employees, unless they fall under “learned professional exception,” and must receive overtime pay.

The federal law addressing overtime pay and minimum wage for most employers is the Fair Labor Standards Act (the “FLSA”). Whether or not a particular employer or employee is covered by the FLSA can become rather complex. If an employer does not know whether it or its employees are covered, it should obtain legal advice applicable to its specific situation. In most instances, however, the following is an accurate, general summary of whether a health care employer is covered by the FLSA:

(1)Subject to (2) and (3), below, an employer is covered if it has an annual gross volume of $500,000. This would be the test for health care employers such as freestanding home care agencies or hospices, physician offices, laboratories, and DME suppliers.

(2)If the employer is a hospital or nursing home, it is covered irrespective of its annual gross volume. A freestanding employer which is a subsidiary or sister corporation of a hospital or nursing home also may be viewed as part of the hospital or nursing home operation for coverage purposes unless it is operated quite independently.

(3) If the employer is a state or local public employer (e.g., a county health department), it is covered irrespective of its annual gross volume.

Under the FLSA, generally, an employer must pay its covered employees a minimum wage per hour worked and at a rate of one and one-half times the employee’s regular rate for hours worked in excess of 40 hours in a workweek. A special rule exists for hospitals, nursing homes and certain other residential facilities which permit overtime to be paid for hours worked over eight in a day or over 80 in a 14 day period.  This is commonly referred to as the  “8 and 80” rule.  However, many healthcare companies violate this rule and refuse to pay overtime.

If you are a healthcare worker and your job is not exempt under federal law, your employer must pay overtime wages.   To find out if you are eligible for past and present overtime pay, you should contact our unpaid overtime lawyers now at (855) 754-2795 to learn more about your legal rights to receive the money you are owed for your time worked.  Our experience attorneys will evaluate your case and discuss your legal options with you.  We provide a Free Case Review and there are no legal fees or costs until you receive your settlement.

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