Supreme Court Denies Stay of DOL’s Home Care Rule

Proskauer - Law and the Workplace

In response to this approaching effective date, three industry trade groups making up a home care industry coalition sought a stay of the ruling with the D.C. Circuit.  The Court of Appeals denied the motion on September 18, 2015.  The challengers then went to the United States Supreme Court, asking for a stay pending the filing of a petition for certiorari.  Yesterday, the U.S. Supreme Court denied that application, which means the new regulation could go into effect as early as next week.

The controversial rule extends federal minimum wage and overtime protections to an estimated two million workers by eliminating the Fair Labor Standard Act’s (FLSA) minimum wage and overtime exemption for certain home care workers.  29 C.F.R. Part 552.  While the DOL’s Wage and Hour Division (“WHD”) had previously stated that it would proceed with limited enforcement until December 31, 2015, home care companies could still face private enforcement efforts even during the enforcement “grace period.”  (See our prior blog post.)  As such, employers should immediately take steps to comply with the new regulation.

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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