Federal Court Ruling Allows Minimum Wage Exemptions For Home Care Companionship Services

On December 22, 2014, a federal district court judge vacated part of a federal Department of Labor (DOL) rule preventing home care provider organizations from seeking an exemption to paying minimum wage and overtime to paid caregivers providing companionship services. The DOL rule, which went into effect on January 1, 2015, requires provider organizations to pay all home care workers at least the federal minimum hourly wage, plus overtime, in compliance with the Fair Labor Standards Act (FLSA).   The district court ruling allows provider organizations to claim an FLSA companionship exemption to avoid paying minimum wage (in states that do . . .