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Overtime exemption reinstated for homecare workers

The long awaited decision from the Federal Appeals Court came out yesterday, Friday 21st August. The 3-judge panel’s decision makes way for the end of overtime exemption in the homecare industry. Home care workers were exempt from overtime pay since the mid-1970s. This decision might only be a step in a longer legal challenge between the home care industry and the Obama administration. No word yet on when this decision will have to be implemented by home care agencies so stay tuned!  

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2015 Brings Good News to Employers in the Home Care Industry

The new year has already brought its share of excitement to employers in the home care industry and it could be summarized by “net zero”, but what a ride is was! To understand what happened to the home care industry, we need to go back a few years. In 2013, the Department of Labor (DOL) announced that the overtime exempt for home care workers would disappear come January 1, 2015. It also created a new definition of companion caregiver. These pronouncements clearly put the home care industry in a difficult position and threatened its business model. So a number of …

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Federal Court Stays Effective Date Of DOL’s Home Care Rule

Federal Court Stays Effective Date Of DOL’s Home Care Rule On January 2, a District of Columbia federal court today issued a Temporary Restraining Order (TRO) preventing the rule from taking effect on January 1, 2015 that would have drastically narrowed the “companionship services” exemption from overtime under the Fair Labor Standards Act (FLSA). The new rule was challenged by a coalition of associations representing home care providers. The lawsuit argued that the DOL had exceeded its authority under the FLSA, which specifically exempts companionship and live-in employees from overtime requirements in order to maintain the affordability of home care …

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Breaking news – The DOL announces delayed enforcement of the Homecare Rule

The Department of Labor (DOL) on October 4 2014 announced that it will delay bringing enforcement actions against homecare employers who violate the new minimum wage and overtime requirements imposed by the homecare regulations as of January 1, 2015. This is a delay in enforcement, not a revocation of the FLSA requirements for homecare workers. This means a 6-month reprieve during which the DOL will not bring enforcement actions against violators of the new rules (minimum wage and overtime). The following 6 months to December 31, 2015, the DOL will “exercise prosecutorial discretion” taking into consideration the extent to which …