On October 1, 2013, the U.S. Department of Labor (“DOL”) issued a Final Home Care Rule (the “Final Rule”) that revised the definition of companionship services and third parties who provide such services, ultimately providing minimum wage and overtime coverage under the Fair Labor Standards Act (the “FLSA”) to an estimated 2 million caregivers. The Final Rule was originally scheduled to go into effect on January 1, 2015; however, a lawsuit was filed in June 2014 challenging the Final Rule. In December 2014 and January 2015, a U.S. District Court Judge vacated the Final Rule. The DOL appealed and recently the U.S. Court of Appeals for the District Court of Columbia Circuit unanimously overturned the District Court’s ruling; thereby, affirming the DOL’s rule.
The U.S. Court of Appeals order has not become effective. The DOL has stated that it will not enforce the Final Rule until 30 days after the Appellate Court’s order becomes effective. We will keep you informed as to when the order becomes effective.
Prior to the rule becoming effective, employers need to evaluate their current caregiver positions to determine whether they will meet any exemption from minimum wage or overtime compensation under the FLSA. Please contact us if we can be of assistance in determining the proper classification for the caregiver position or any other position under the FLSA.