New Department of Labor Rules Could Lead to Increase in Lawsuits

sick man.jpgThe U.S. Department of Labor's Wage and Hour Division intends to publish a Notice of Proposed Rulemaking that could make far-reaching changes to minimum wage and overtime protections for nearly two million workers who provide in-home care services for the elderly and infirm.

The proposal will revise the companionship and live-in worker regulations under the Fair Labor Standards Act to more clearly define the tasks that may be performed by an exempt companion, and to limit the companionship exemption to companions employed only by the family or household using the services.

In addition, the Department proposes that third party employers, such as in-home care staffing agencies, could not claim the companionship exemption or the overtime exemption for live-in domestic workers, even if the employee is jointly employed by the third party and the family or household.

It's too early in the process to predict, but these changes could eventually lead to a big increase in the number of FLSA complaints and lawsuits against employers, including families who employ such individuals as caretakers.  

Upon publication, interested parties will be invited to submit written comments on the proposed rule at www.regulations.gov.

More information on the proposed rule is available at the Department of Labor Website.

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