Friday, July 15, 2016

U.S. Supreme Court Declines Review: Minimum Wage & Overtime Rule Upheld

Originally published by kennedyhealthlaw.

The Department of Labor’s (DOL) final rule on the Home Health Aide/Companionship Services minimum wage and overtime exemption became effective January 1, 2015.   The final rule revised 1975 Fair Labor Standards Act (FLSA) regulations in response to changes to the home care industry and workforce.  The major effect of the final rule was to include domestic service workers under the FLSA’s minimum wage, overtime, and record-keeping provisions.  No longer would third-party employers of home health workers, such as home healthcare agencies, be able to claim the exemption.
The rule was challenged in federal court by associations of home care companies, and orders were issued to vacate the rule’s third-party provisions and revised definition of companionship services.  The DOL then appealed the orders to the D.C. Circuit, and it prevailed.  On June 27, 2016, the U.S. Supreme Court denied the associations of home care companies’ request for certiorari.  As things currently stand, the DOL is now poised to enforce compliance of the final rule which is affirmed based on the D.C. Court’s decision.
Regardless of the FLSA’s final rule, LVNs and most other hourly employees must get time-and-a-half pay for work over 40 hours over seven consecutive days.  A “per visit” home health rate must translate into hourly pay and comply with the overtime law; time for notating medical records and driving to patient’s homes must also be compensated.

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.

from Texas Bar Today
via Abogado Aly Website

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