DOL delays enforcement of rule requiring overtime pay for in-home care employees
Posted September 16, 2015
On September 14, the Department of Labor (DOL) announced that it intends to begin enforcing its regulation requiring overtime pay for employees of third-party providers who provide home care services. Since the regulation has been the subject of legal challenges, enforcement will be delayed for 30 days after the court issues a mandate making its opinion effective.
In 2014, the DOL published a regulation that requires third-party providers to pay overtime to employees giving in-home care. Under the regulation, employees working for a third party can be exempt from overtime if they primarily provide companionship services, but must receive overtime if they provide care. Individuals hired directly by a client are still exempt from overtime, even if providing care.
The regulation was scheduled to take effect on January 1, 2015, but a district court struck it down. Then, on August 21, the federal District of Columbia Court of Appeals overturned that decision. An appeal to the U.S. Supreme Court might be likely, so the court will not reinstate the rule until October 13 to allow for consideration of appeal. If an appeal is filed, the court may stay its decision.
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