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Home Health & Hospice Week

Industry Note:

Eliminating Companionship Exemption A No-Win Move

Published on Fri Jan 27, 2012

Comments on the proposal are due next month. The Department of Labor's proposal to eliminate the overtime exemption for companion workers is going to backfire, if a new survey is any indication. In December, the DOL proposed a rule eliminating the exemption for any home care workers employed by a third party -- i.e., any staff of home health agencies and private duty agencies (see Eli's HCW, Vol. XXI, No. 1, p. 2). Background: The companionship exemption exempts 'companion' workers from Wage and Hour rules mandated by the Fair Labor Standards Act, which require overtime payment and minimum wage. In a survey conducted by the National Association for Home Care & Hospice and the Private Duty Home Care Association, nearly 63 percent of the respondents that are currently obligated to pay overtime under state law report that they restrict OT hours. "More than 86 percent of the companies that will face [...]
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