Breaking News on FLSA Lawsuit

On Wed., Dec. 31, a U.S. District Court judge issued a temporary restraining order that delays the effectiveness of the new regulation narrowing the companionship services exemption from the Fair Labor Standards Act's (FLSA's) wage and hour requirements. The new regulation was scheduled to take effect on Thurs., Jan. 1, 2015.

As a result of the order, until at least Thurs., Jan. 15, eligibility for the companionship services exemption from the FLSA's wage and hour requirements will continue to be based on the prior definition of companionship services, and home care agencies may continue to pay aides overtime based on requirements in effect prior to Jan. 1. 

The temporary restraining order maintains the status quo while the court considers the plaintiff's motion for a preliminary injunction to prevent the new regulation from taking effect until the a final decision on the lawsuit is rendered. The court will hold a hearing on the motion this Fri., Jan. 9, 2015. It is expected that the judge will rule on that request by Thurs., Jan. 15.

The U.S. Department of Labor's statement on the order is available here.

Please stay tuned for further information.

Contact: Karen Lipson, klipson@leadingageny.org, 518-867-8383, ext. 124 or Cheryl Udell, cudell@leadingageny.org, 518-867-8871