Tag Archive: Minimum Wage

Sep 18

FLSA Update: New Rule Expands Coverage to Home Care Workers

Photo Credit: VA

Photo Credit: VA

Yesterday, the United States Department of Labor (“DOL”) announced the final version of a rule that will expand the coverage provided by the Fair Labor Standards Act (“FLSA”).  Under the new rule, home care workers will be protected by the minimum wage and overtime provisions of the FLSA.[1]  Although home care workers whose primary role is to provide companionship to the patient remain exempt from the provisions, the expansion of coverage is expected to bring approximately 2 million additional workers under the coverage umbrella.[2]

Already, both sides of the issue have expressed opinions on why the expanded coverage either will or will not be a good thing in the long run.  Proponents of the new rule have highlighted the fact that a large number of workers who were traditionally underpaid for the services and hours they provided may now have an opportunity to earn a fair salary.[3]  Opponents of the new rule warn of “unintended consequences” that will result from requiring the payment of minimum wage and, in particular, overtime.[4]  They believe that one potential consequence will be the creation of an underground industry within the home health care industry comprised of workers who do not have proper training.[5]

The new rule takes effect January 1, 2015.[6]  Between now and then, the DOL will work with stakeholders in the industry, including the agencies who employ home care workers, home care workers, and patients, on implementation.[7]  More information, including fact sheets and details about upcoming webinars, are available at a special DOL website, which can be accessed here.


[1] United States Department of Labor, Minimum wage, overtime protections extended to direct care workers by US Department of Labor, September 17, 2013, available at http://www.dol.gov/opa/media/press/whd/WHD20131922.htm.

[2] Id.

[3] Bryce Covert, Why It Matters That Home Care Workers Just Got New Labor Rights, Think Progress, September 17, 2013, available at http://www.thinkprogress.org/economy/2013/09/17/2634411/home-care-workers-rule-change.

[4] Angela Gonzales, New ruling on home care workers could mean bigger bills for consumers, Phoenix Business Journal, September 17, 2013, available at http://www.bizjournals.com/phoenix/blog/health-care-daily/2013/09/new-ruling-on-home-care-workers-could.html.

[5] Id.

[6] Department of Labor, supra at note 1.

[7] Id.