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Home Health & Hospice Week

Labor Law :

Obama Administration Considers Restricting Companionship Exemption

Published on Tue May 19, 2009

Major change to minimum wage and overtime laws could hurt home care providers and clients. A controversial labor law issue put to rest by the U.S. Supreme Court two years ago has risen again -- and it could cost you. Fifteen Democratic senators have written a letter to new Department of Labor Secretary Hilda Solis, asking the DOL to reinterpret the companionship exemption under the Fair Labor Standards Act. FLSA governs minimum wage and overtime rules for workers. Background: Two years ago, the Supreme Court upheld a DOL interpretation of FLSA which exempts companion workers for the elderly from minimum wage and overtime laws (see Eli's HCW Vol. XVI, No. 22, p. 162). That exemption applies to workers employed by a third party, such as a home health agency, the decision noted. Now the influential senators, including Tom Harkin (D-Iowa) and Edward Kennedy (D-Mass.), want the regulation changed. "We strongly urge [...]
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