Latest Developments on the Home Health Aide "Companionship Exemption"

Latest developments -

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 upholding the final rule. This rule applies to the U.S. Department of Labor's (DOL) rule 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).

This denial means that the effective date of the Final Rule cannot be delayed any longer.

Therefore, third-party employers of homecare 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 today, October 13, 2015.

Audio Conference

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

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

Two Surveys 

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.  Click here to respond to the survey.

The Department of Health (DOH) will also be sending a survey to Managed Long Term Care (MLTC) plans to assess the impact of the FLSA Companionship Exemption Rule. DOH is trying to use the survey 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 increased amounts paid retroactively to October. 

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

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