Kayla Moreland , May 14, 2015
Employees providing domestic or companionship services have traditionally been exempt from minimum wage and overtime pay under the “companionship services” exemption of the Fair Labor Standards Act (FLSA). However, the home health care industry will experience a significant change once the Department of Labor’s “Final Rule” is in effect on January 1, 2015. The Final Rule revised the definition of companionship services by limiting the duties and circumstances that must be satisfied in order for the exemption to apply. Individuals directly employed by the person receiving services will remain exempt, yet home health care agencies and other third party employers will be unable to claim this exemption. As a result, it is estimated that the new regulations will extend minimum wage and overtime pay protections to nearly two million home health care workers.
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