Appellate Court Decision on the Home Care Companionship Exemption

On Aug. 21, the U.S. Court of Appeals for the District of Columbia in a unanimous decision upheld a Department of Labor (DOL) rule extending minimum wage and overtime protections under the Fair Labor Standards Act (FLSA) to all companionship services workers employed by third party home care providers. This reversed an earlier ruling by a lower Federal court that said the DOL did not have the authority to make the changes.

At this time, the DOL should be posting whether there will be any delay, either in terms of effective date or enforcement date, for the rule.  It is also unknown whether the plaintiffs in the case will take the next step and ask for a review by the United States Supreme Court.

As LeadingAge New York has previously reported, in New York State, the effects of the new regulations and the Weil decision will be felt principally in relation to overtime pay.  Under New York State law, home care workers must be paid at least minimum wage (and in some areas of the State, a higher rate of pay based on living wage laws or wage parity) plus overtime. However, for these workers, overtime pay is currently calculated, under New York regulations, based on the minimum wage rather than the regular rate of pay. The new federal regulations would require that overtime be calculated based on the regular rate of pay.  They would also impose new requirements for live-in cases, including overtime pay for work in excess of 40 hours (rather than 44 hours) and mandate more detailed recordkeeping.

A detailed analysis of the decision from our attorneys at Hinman Straub is available here.  LeadingAge NY will keep members posted on additional information as it becomes available.

Contact: Cheryl Udell, cudell@leadingageny.org, 518-867-8871