Litigation Halts FLSA Exempt Status Change for Home Care Workers

March 10, 2015

in Compliance, Employee Benefits

The Home Care Final Rule, which would have made almost 2 million home care workers, who were previously classified as exempt, eligible for minimum wage and overtime under the FLSA, did not go into effect at the beginning of 2015 as planned. A federal judge struck down the two main provisions of the Final Rule (disallowance of third party use of the companionship exemption and a greatly narrowed definition of companionship services) which immediately halted implementation. The Department of Labor has appealed both of these rulings, and until the appeal is decided, employers may continue to use the exemption as it was before the Home Care Final Rule.

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