Friday, October 4, 2013

Government Issues Final Rule on Companionship Exemption

On October 1, 2013 the Department of Labor published a final rule regarding the companionship services exemption to clarify and narrow the duties that fall within the term: in addition third party employers, such as home health agencies, will not be able to claim the exemption.  The major effect of this Final Rule is that more domestic service workers will be protected by the Fair Labor Standards Act (FLSA) minimum wage, overtime, and recordkeeping provisions.  The rule goes into effect on January 1, 2015.
If a person is employed directly by the person, they have the opportunity to obtain a companionship exemption if the personal care services are less than 20% of the total amount of services provided. 
This is a very detailed ruling.  We will be adding this to one of our new DixonHSI-LIVE events.  Look for more information about this topic in the future.
For more information please utilize the following link:
http://www.gpo.gov/fdsys/pkg/FR-2013-10-01/pdf/2013-22799.pdf

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