As we mentioned a few months ago, the U.S. Court of Appeals has allowed the Department of Labor (DOL) to extend the FLSA’s minimum wage and overtime requirements to home healthcare workers who had previously been exempt. We indicated previously that the effective date had not been conclusively determined. We now know that as of November 12, 2015, the DOL began exercising its prosecutorial discretion in determining whether to bring enforcement actions. The DOL said that it will give “particular consideration” to “the extent to which States and other entities have made good faith efforts to bring their home care programs into compliance with the FLSA since the promulgation of the Final Rule.” 79 Fed. Reg. 60974 (October 9, 2014). In order words, right now, the DOL will selectively prosecute only those who are not acting in good faith. However, starting January 1, 2016, the Department will begin aggressively prosecuting those not in complete compliance with the FLSA’s protections (whether in good faith or not).
Now would be the time to adjust your minimum wage and overtime policies, if you have not done so already, as this may have a significant effect in your budgeting.