DOL Extends FLSA Protections to Home Care Workers

On September 17, 2013, the U.S. Department of Labor (“DOL”) announced that it will extend the minimum wage and overtime protections of the Fair Labor Standards Act (“FLSA”) to the estimated 1.9 million direct care workers in the U.S., most of which provide home care assistance to the elderly, ill, injured, and disabled. The new rule extends these protections to all direct care workers employed by home care agencies and other third parties but exempts individuals who are privately employed by the person receiving services or their family and who are engaged primarily in activities that involve providing companionship as opposed to medical care.

Proponents of the rule point to the rapidly expanding home care industry as more Americans choose to receive care in their homes rather than in nursing homes or other facilities. They believe that the rule will reduce turnover in the industry and improve the quality of home care by increasing the number of committed home care workers. However, there are those who fear that the new rule will increase costs, thus limiting access to home care.

The DOL will publish the final rule in the Federal Register in early October of this year and the rule will go into effect on January 1, 2015. The somewhat distant effective date will allow employers time to plan for and begin implementing the necessary changes. Employers should consult with legal counsel to determine how best to prepare and adapt their practices to this new rule.