The Court of Appeals for the D.C. Circuit redefined Fair Labor Standards Act exemptions for home healthcare workers, narrowing exempt workers to those who directly work for the individual or for the family as opposed to a third party, such as a home care or temporary agency.
This decision carries several major implications for workers, direct employers and home care or temporary agencies. These include:
1. Home care or temporary agencies should review their practices as soon as possible to ensure that they are following the new laws.
2. Agencies should pay federal or state minimum wage to domestic workers who are no longer considered exempt.
3. If a family pays a home healthcare worker through an LLC that it owns, then the worker might still be exempt.
4. Domestic worker wages might remain stagnant, since home care agencies will probably change their scheduling to keep down labor expenses.
5. Agencies will need to calculate employee hours so that workers are properly paid under the new regulations.
6. Employees will also need to track hours to ensure that they receive correct payment.
7. A homecare employee can only work a maximum of 20 percent of his or her weekly hours, or eight hours during a 40-hour work week, providing housework.
The Home Care Association could challenge the scheduled implementation, which might result in a delay.
The Joseph & Kirschenbaum LLP team can help you understand your rights and options in a wage and hour case. Call us today at 1 (212) 688-5640, or email us at firstname.lastname@example.org, to schedule a free intake evaluation.