Employers Lose Companionship Exemption

Yesterday, the Department of Labor (DOL) released its final rule amending the companionship and live-in worker regulations under the Fair Labor Standards Act.  According to the DOL, the final rule makes two significant changes:

Under the final rule, effective on January 1, 2015, third party employers such as home care staffing agencies are not entitled to claim either the FLSA’s companionship services or live-in domestic service employee exemptions.  Agencies and other third-party employers must review their business models, employment policies and scheduling practices to ensure that they appropriately pay their companion and live in workers at least the federal minimum wage and overtime on or before the January 1, 2015 effective date.

For assistance with review of your employment policies, please contact Betsy Davis at (804) 697-2035.

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