In 2013 the Department of Labor announced new regulatory language that substantially limited the scope of the Fair Labor Standards Act’s companionship exemption. Those regulations, of course, were challenged through litigation which remains ongoing, and their implementation by the USDOL was delayed until many months after the original effective date of January 1, 2015. Though
companionship exemption
Caretakers’ Own Homes Were “Private Homes,” Rendering Them Exempt Companions
Though the USDOL’s new rule regarding overtime-eligibility for home care workers is currently in force, pending appeal, litigation continues over the prior rule. A new appellate ruling addresses the scope of the term “private home” for purposes of the prior rule, clarifying that the former exemption applies to caregiver work in the private homes…
Ohio Federal Court Rules Home Care Agency Not Required To Pay Overtime To “Companions” During Temporary Vacatur Of New Federal Rules
Providing much needed guidance to industry employers still wrestling with fallout from the United States Department of Labor’s drastic reduction to the scope of the companionship exemption, District Court Judge Sandra S. Beckwith held this week that a home care agency properly relied on the temporary vacatur of the DOL’s new federal regulations in…
Ohio Federal Court Rejects Challenge to Application of Companionship Exemption to Home Health Aide
Last week, an Ohio, a federal judge held that a home health aide failed to demonstrate that she performed general housework unrelated to the care of her patients, and therefore qualified as a provider of companionship services under the Fair Labor Standards Act’s previous formulation of the “companion” exemption. As such, the home health…
Home Care Fallout: Increased Institutionalization?
Five days into the DOL’s enforcement of the new rule rendering most home health aides eligible for overtime under the FLSA, questions abound regarding how state Medicaid and Medicare-funded programs will comply with the rule within their current budgets. One new report cautions consumers of home health care and their advocates to be aware…
DOL Enforcement of Home Care Rule to Commence November 12, Subject to “Prosecutorial Discretion”
Chief Justice Roberts’ denial of the Home Care Association of America’s request for stay of issuance of mandate confirms that the new rule rendering many home health aides overtime-eligible is effective, pending appeal. In response to that denial, Wage-and-Hour Administrator David Weil issued a new policy statement confirming that the Department’s “non-enforcement period” for the…
DC Circuit Upholds DOL’s End to Companionship Exemption for Third-Party Agencies
The U.S. Court of Appeals for the D.C. Circuit today ruled that the U.S. Department of Labor’s decision to reverse its prior position and extend the FLSA’s minimum wage and overtime protections to employees of third-party agencies who provide companionship services and live-in care within a home was a reasonable interpretation of the law. The…
DC Judge Leon Also Vacates New Definition of “Companionship Services”
On the heels of his ruling vacating the DOL’s new rule (which was scheduled to be effective January 1st) rendering the FLSA’s companionship exemption unavailable to “third party” employers of companions, Judge Richard Leon has now issued a companion decision vacating the new, substantially narrowed definition of “companionship services” contained in the same…
DC Judge Invalidates Home Care Rule
Last evening, the Home Care Association of America followed in the footsteps of the Mortgage Bankers Association, obtaining a ruling that the DOL’s reversal of its position regarding the exempt status of agency-employed “companions” violated the Administrative Procedure Act. Home Care Ass’n of Am. v. Weil, 2014 U.S. Dist. LEXIS 176307 (D.D.C. Dec.…
DOL Policy Statement Delays (Government) Enforcement of Home Care Overtime Rule
In response to pressure from state governments and others fearing the increased cost of home care services, the Department of Labor announced Tuesday that it would delay its own enforcement of the new rule requiring that previously-exempt “companions” receive minimum wage and overtime. The DOL’s Policy Statement stated that the DOL would not…