Home Health Care Agencies Find Companion in Federal Court

The close of 2014 presented a host of potential problems for home health care providers.  As a result of new Department of Labor (“DOL”) regulations changing the federal “companionship” exemption from overtime and minimum wage requirements, many home health care agencies have been bracing themselves for significant changes to their pay practices.

 

The DOL originally issued its Final Rule on September 17, 2013, which revised the federal regulations defining the FLSA’s companionship exemption.  Most notably, the revisions (1) made the exemption available only where the “employer” is the individual, family, or household using the services, thereby making it impossible for third-party agencies to avail themselves of the exemption and (2) changed the definition of “companionship” so as to exclude many home health care aides from the exemption’s coverage..

 

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