A wave of changes in federal regulations is set to impact senior living operators, with new rules banning non-compete agreements and granting overtime pay protections to workers. While both rules could have significant effects on how employers operate, legal experts predict that the overtime rule will have a larger impact.
The Federal Trade Commission recently issued a final ruling to ban noncompetes, coinciding with the U.S. Department of Labor’s move to grant more workers overtime protections under the Fair Labor Standards Act. The overtime rule changes include raising the maximum threshold for exempt employees, potentially making more senior living employees eligible for overtime pay.
Industry associations have voiced concerns about the impact of the overtime rule, suggesting it may lead to higher labor costs passed on to residents. Operators like Paradigm Senior Living and Watermark Retirement Communities are preparing for the changes, with some planning to adjust staffing levels and schedules to comply with the new regulations.
While the impact of the overtime rule remains uncertain, operators expect to face challenges in ensuring compliance while maintaining their margins. The ban on noncompetes, on the other hand, is not expected to have a significant ripple effect in the senior living industry. Overall, operators are cautiously optimistic about adapting to the new rules and mitigating any potential disruptions.
