A new rule taking effect January 1, 2015, means most direct-care workers employed by agencies and other third-party employers will be entitled to at least the federal minimum wage and overtime pay.
The U.S. Department of Labor (DOL) says the change will affect nearly two million direct-care workers, such as home health aides, personal care aides, and certified nursing assistants. The rule extends minimum wage and overtime protections to all direct-care workers employed by homecare agencies and other third parties.
Individual workers who are employed only by the person receiving services or that person’s family or household and engaged primarily in fellowship and protection (providing company, visiting, or engaging in hobbies) and care incidental to such activities still will be considered exempt from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime protections, according to a DOL fact sheet.
Companionship services remain exempt under the new rule in certain circumstances when the workers aren’t employed by third parties. But third-party employers such as homecare staffing agencies won’t be able to claim the exemption.
The new rule also stipulates that agencies and other third-party employers will no longer be able to claim the overtime pay exemption for live-in domestic service workers. Instead, employers will be required to keep employee time and pay records for any nonexempt direct-care worker they employ. Those workers also must be paid at least the federal minimum wage.
The DOL has created a web portal with information on the new rule.