Challenges and Best Practices for Home Care Employers Following the Elimination of the Companionship Exemption

In this Issue:

- Introduction

- History of the Companionship exemption

- The New Regulations

- Impact of the New Regulations

- Challenges and Best practices for Home Care employers

- Conclusion

- Excerpt from Introduction:

On October 1, 2013, the Department Of Labor’s Wage And Hour Division (DOL) published a final rule in the Federal Register eliminating the Fair Labor standard Act’s (FLSA) minimum wage and overtime exemption for home care workers employed by home care agencies and other companies. The new regulations also significantly narrow the exemption for home care workers employed directly by the individuals or families receiving home care services.

The new regulations will affect home care employers, their employees, and their clients seeking assistance to care for an elderly parent or a disabled child in his or her own home. For home care employers in particular, compliance with the law will require them to invest significant time and resources evaluating their compensation plans, updating their payroll and timekeeping systems, adopting new or revising wage and hour policies, and training their employees. recognizing that such a sea change conversion of home care workers from exempt to non-exempt takes a great deal of time, the DOL set an effective date of January 1, 2015. None the less, given the many challenges employers will face preparing their organizations for the changes, it would be best to begin planning for the transition now.

Please see full Report below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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