DOL Rescinds 2024 Overtime Rule, Reverts to 2019 Salary Thresholds
The U.S. Department of Labor formally rescinded the 2024 overtime rule and returned to the 2019 salary threshold framework. The 2024 rule would have expanded overtime eligibility for home care workers, but courts vacated it after the first threshold increase took effect. The rescission provides immediate relief to home health and home care providers who faced increased labor costs under the 2024 standards. Providers operating under Medicaid managed care contracts can now plan staffing and budgets using the lower 2019 thresholds.
Medicaid managed care organizations with home and community-based services contracts face lower labor cost pressures and greater staffing flexibility under the 2019 overtime thresholds, affecting capitation rate adequacy and LTSS network stability.
LTSS · Managed Care
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