New Law Makes NPs Ineligible for Higher Hourly Overtime Pay Rates
By Melanie Balestra, NP, Esq.
An exempt employee is an employee that is exempt from receiving overtime pay. It is regulated under the Department of Industrial Relations. Exempt employees include executive, administrative, learned professional, creative professional, computer and outside sales.
Nurses, in general, have always been considered non-exempt as non-professional employees. However, the law has changed to add to the list of exempt employees certified nurse anesthetists, certified nurse anesthetists, and certified nurse practitioners, any of which are primarily engaged in performing duties for which certification is required. Therefore, nurse practitioners who are paid hourly can only be paid their hourly wage if they work over 40 hours per week. Their employer does not have to pay them 1½ of their hourly wage for hours worked over 40.
If the nurse practitioner is working in only an RN capacity, then the NP would qualify as a non-exempt employee and qualify for 1½ their hourly wage. If the NP is salaried, the employer is not required to pay any pay over the salary for working more than 40 hours per week.
Before, signing a contract, the NP should make sure that the contract clarifies whether or not the NP will be paid hourly or salaried. If the NP is being paid hourly, the contract should specify the minimum hours a week that the NP will be guaranteed and that the NP will be paid for any hours over 40, and be paid for being on call and performing administrative work. As a salaried employee, the NP may want to exclude being on call and include time set aside for administrative work. Benefits should be included in the contract whether an hourly or salaried employee.
A nurse practitioner, attorney, and member of CANP, Melanie Balestra provides legal guidance to the Association and its members. CANP members have the ability to submit questions and receive responses as a free benefit of CANP membership. Not a member? Become one today!