On December 15, 2011 the Wage and Hour Division (WHD) announced that it will publish a Notice of Proposed Rulemaking (NPRM) to revise the companionship and live-in worker regulations under the Fair Labor Standards Act (FLSA).
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Get Your Report Now!Background. In 1974, Congress expanded protections to “domestic service” workers but created a limited exemption from both the minimum wage and overtime pay requirements of the Act for casual babysitters and companions for the aged and infirm, and created an exemption from the overtime pay requirement only for live-in domestic workers.
Since then, the in-home care industry has grown and many employees are professional caregivers, as opposed to neighbors etc.
NPRM Overview: The WHD is revising the regulations for two purposes, according to it’s Proposed Rule Website:
- 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. Third party employers, such as in-home care staffing agencies, could not claim the exemption, even if the employee is jointly employed by the third party and the family or household.
The OMB-approved version of the NPRM is available online. Once the NPRM is published in the Federal Register, interested parties will be invited to submit written comments.