FLSA Updates for Home Care and Managed Care Plans

As previously reported, on Oct. 6, 2015, Chief Justice John Roberts of the United States Supreme Court denied a motion to stay the decision by the D.C. Circuit Court of Appeals and thus upholding the final U.S. Department of Labor (DOL) rule making affecting minimum wage and overtime compensation for home care aides and live-in personal care services (known as the "companionship exemption" of the Fair Labor Standards Act, or FLSA).

Therefore, third-party employers of home care workers must pay overtime compensation of one and a half times the employees’ regular rate of pay for hours in excess of forty (40) hours per week effective as of October 13, 2015.

Audio conference

LeadingAge New York is holding an audio conference this Thurs., Oct. 22nd on this final ruling. The agenda will cover any updates on the rule; enforcement timeframes by the DOL; impact on wage parity; other pending State lawsuits that may impact overtime wages for home care workers; and answers to your questions. The audio conference will be conducted by an expert labor attorney, Joseph Dougherty, from our counsel at Hinman Straub, P.C.     

To register and ask your questions please click on - Legal Update Part 1-What Home Care, Hospice Providers and Managed Care Plans Need to Know About Changes in the Companionship Exemption from Wage and Hour Requirements

Three Surveys/Applications 

1. LeadingAge NY has sent members a survey on the fiscal and administrative impact of the implementation – it is critical to have your responses to this survey so we can develop our advocacy strategy on overtime and travel related costs.  Click here to respond to the survey.
2. The Department of Health (DOH) has sent a revised survey to Managed Long Term Care (MLTC) plans to assess the impact of the FLSA Companionship Exemption Rule. This survey has been revised to include a new question on the total numbers of hours spent traveling between clients. DOH will use the survey findings to assess the financial impact of changes to overtime payments and what adjustments will need to be made to the MLTC rates. DOH expects the adjustments will be completed in January with rate increases retroactive to October. 
3. DOH posted the Consumer Directed Personal Assistance Program FLSA BIP Payment Program. This included an Application Alert and an Application for Consumer Directed FLSA BIP Payment Program.

LeadingAge NY will continue to keep members posted on the latest developments.

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