For pharmacists working on new programs who may not have gotten this email from ASHP:

Hello to RPDs, Directors of Pharmacy and Deans:

Time for an update on the DOL rule that goes into effect December 1^st.  Note the last paragraph where ASAE has filed a lawsuit.  It will be interesting to see what happens with that.  We do not know  what will happen and do not know if there will be a delay  so most people are moving towards compliance.  If there is a resolution - I will let everyone know.

There are a couple of updates related to pending legislation on the overtime rule (effective December 1)  in Congress and we are also continuing to engage directly with the Department of Labor.  We have sent a request for an Advisory Opinion which would ask if pharmacy residents would be exempt as medical residents are from the rule but do not yet have any information to share.

Regarding the legislation I mentioned above, in September, ASHP sent a letter of support for H.R. 5813, which would impose a step-wise increase in the salary thresholds, with the full increase not required until December 1, 2019.  In addition, the bill would eliminate the automatic increase in the threshold set to occur every three years.  At present, the bill has passed the House and is under consideration by the Senate.  Congress convenes the second week of November, so it would come up for a vote then.  There’s a possibility the President would veto the bill if it passes, but Congress could also override that veto (as it did earlier this fall on another bill).  There is a second Senate bill, S. 3464 that would delay implementation for a longer period.  Right now the bill is not bipartisan, however, ASHP is working with Senate staff to garner bipartisan support for this measure and/or a successful Senate vote on HR 5813.

Also, just a reminder that salaries are an eligible direct expense for Centers for Medicare & Medicaid Services (CMS) pass-through funding for PGY1 programs in hospital-run accredited residencies that meet the criteria for pass-through funding. If your program is eligible, this is a mechanism to offset some of the impact of the new salary threshold. Some programs have also reported that they have offset the salary increase by making the resident responsible for their travel expenses to ASHP MidYear and Regional Residency Conferences thus making the salary increase more budget neutral.

Additionally, while it isn’t a very appealing option from an administrative perspective, DOL staff did say that it is entirely acceptable for programs to maintain current salaries below the threshold and move individuals to non-exempt status.  For residents, this would require determining how many hours of overtime per week would be allowed and then assigning an hourly rate that would provide residents with the salary the program can afford.  This may be a useful stopgap measure while we wait to see what Congress will do with the legislation. 

While continuing to press for a legislative solution to the Administration’s pending overtime rule, ASAE (American Association of Society Executives) has joined the U.S. Chamber of Commerce and numerous other organizations in a lawsuit to block the rule from taking effect on Dec. 1. The lawsuit, filed in September in the U.S. District Court for the Eastern District of Texas, argues that the Department of Labor exceeded its authority under the Fair Labor Standards Act by drastically altering the minimum salary requirements for exemption and by establishing an automatic salary threshold increase every three years, to take place without notice or public comment. The coalition has asked the judge to make an expedited decision as the rule is set to go into effect on Dec 1.

Janet