Yesterday, December 22, 2014, the federal court ruled that the U.S. Department of Labor violated the plain language of the Fair Labor Standards ACT (FLSA) with its regulation that excluded third-party employers from application of the “comprehensive services” and “live-in domestic services” overtime exemptions. Homecare companies are considered third-party employers. Homecare workers employed by the direct consumer of the care (or his/her family) are the only parties that could have used the exemptions under the rule that was invalidated by the court. This does not change any state laws that already limit the exemptions or their application.
Although the decision is a big win for homecare, much remains to be done to fully preserve the overtime exemption for companionship services and live-in domestic services. NAHC is expected to provide more updates. Stay tuned to the HMS blog as we receive more information.
Click here to see our previous blog regarding the rule.
Click here to see an article form NAHC regarding the lawsuit.