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Proposed Changes to Caregivers Exemption, meant to Redefine Companionship Services

Proposed Changes to Caregivers Exemption, meant to Redefine Companionship Services

Elderly couple sitting on a couch with a bouquet of flowers blurry in the foreground

In 1938 the federal Fair Labor Standards Act (FLSA) was passed, setting minimum wage requirements, but it did not apply to workers providing “domestic services” such as housekeepers, in home cooks, maids, nannies and gardeners. In 1974 FLSA was amended to include most of these domestic services with the exception of babysitters and companions for the elderly. However, the department of labor is proposing new regulations that would further restrict the requirements of exempt domestic employees, specifically companionship services.

FLSA states that, “employees in domestic service employment to provide companionship services for individuals who (because of age or infirmity) are unable to care for themselves” are exempt from overtime. The current law also characterizes “companionship services” as “services for the care, fellowship, and protection of persons ” unable to care for themselves.” Often these services will include tasks such as vacuuming, dusting, washing dishes, but it’s important to note that these tasks should not exceed 20% of the caregiver’s / companion’s time.

In 2007, Long Island Care at Home v. Coke, 551 U.S. 158, the United States Supreme Court acknowledged the DOL’s authority to “work out the details” of the statute’s broad language and upheld the companionship exemption’s applicability to third-party employers, such as agencies. Thus, the DOL’s new proposed description of “companionship services” would be restricted to tasks “that are directly related to the provision of fellowship and protection . . . .”  This proposed redefinition would still afford some time for services that are incidental to fellowship and protection but certainly not to exceed 20% of the companion’s time. This would greatly limit the amount of time the companion can spend on general household work, or this could result in the loss of the caregiver’s exemption. Lastly, the proposed regulation would limit the exemption to employees that are directly hired by the family or person using the service.

Should these new restrictions become approved, agencies and families can expect to see increases in labor costs for in home care services. Families or households that employ caregivers directly will need to pay close attention to the tasks being performed in the home or risk running afoul of the FLSA’s minimum wage and overtime requirements.

While federal law affects all states, it is common for individual states to have additional rules and regulations that further define exemptions. In Maine, for example, the exemption for individuals “employed in domestic service in or about a private home and engaged directly by the resident or owner of that private home . . .” was repealed in 2008. Thus, in Maine as in many states, employers are already required to pay minimum wage and overtime to companions for elderly or infirm family members.

Labor law is complex, and if you have any questions regarding your employment it is recommended that you contact a California labor law attorney who can help you understand your rights and in many cases will review your situation without charge.


Photo Credit: Shutterstock/wavebreakmedia

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