A federal proposal to increase additional time pay to hundreds of thousands of further staff may unintentionally result in additional cuts within the availability of companies for folks with mental and developmental disabilities, suppliers say.

The U.S. Division of Labor issued a proposed rule in September that will require employers to pay most salaried staff incomes lower than about $55,000 per yr additional time pay in the event that they work greater than 40 hours in per week. Officers mentioned the rule would have an effect on about 3.6 million staff nationwide.

If permitted, the modifications would have deep penalties for folks with developmental disabilities looking for companies to assist them reside locally, in line with officers on the American Community of Group Choices and Sources, or ANCOR, which represents 2,100 incapacity service suppliers throughout the nation.

The rule would result in greater than $1 billion in further bills for incapacity service suppliers within the first yr alone, the group estimated in a report launched this month.

At problem is that incapacity suppliers are virtually fully reliant on funding from Medicaid. With out modifications in Medicaid reimbursement charges, suppliers are sometimes unable to lift wages for his or her staff.

“Elevating the wage threshold and not using a plan for commensurate funding will drive employers to make even higher cuts to their applications and companies, together with restructuring their workforces to afford the brand new prices,” mentioned Barbara Merrill, chief govt officer for ANCOR. “This may most definitely have the devastating results of each growing unemployment for the very workforce DOL is making an attempt to guard, whereas growing the chance of institutionalization for individuals who are counting on their companies.”

In an ANCOR survey of 700 suppliers throughout 45 states, a 3rd mentioned they would wish to eradicate positions if the proposed rule is adopted, whereas 61% mentioned they might convert salaried staff to hourly and virtually half indicated that they might prohibit additional time.

The issues come amid an already aggravating surroundings for incapacity suppliers who’ve been struggling to draw sufficient staff to keep up companies. A separate ANCOR survey of suppliers final yr discovered that 83% have been turning away new referrals and 63% had discontinued choices due to staffing points.

Officers at ANCOR mentioned they’re hoping that the Labor Division will work with different federal businesses and stakeholders to make sure that service suppliers can meet any new necessities.

“The division is at present reviewing hundreds of feedback obtained from all kinds of stakeholders on the NPRM in the course of the remark interval,” a Labor Division spokesman informed Incapacity Scoop.

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