Medicare Compliance & Reimbursement
Don't Jump The Gun On Companionship Exemption Planning
How much risk are you willing to take on? The Department of Labor's dramatic proposal to eliminate the companionship exemption for all employees of home care agencies can make providers want to take action, but you may want to hold off. Elimination of the companionship exemption for home care employees will subject them to overtime and minimum wage requirements in the Fair Labor Standards Act. But don't be so sure that proposed elimination will take place, says Washington, D.C.-based attorney And in 2008, the U.S. Supreme Court upheld a DOL interpretation of FLSA which exempts companion workers for the elderly from minimum wage and overtime laws -- including workers employed by home care agencies. However, the Obama Administration's enthusiasm for the idea, evidenced by the fanfare with which the President unveiled the proposed rule, could work against agencies' interests in the rule, observers worry. The industry won't get answers until the final rule comes out. If the DOL fast tracks the regulation, it could be out as early as this summer, predicts attorney Experts' advice varies on how to react to the proposed rule. Hogue advises sitting tight "in view of DOL's checkered past with regard to regulations addressing these issues." Gilliland agrees. "I'd wait for the final rule because we don't really know if there will be one and, if there is, exactly what it will say," he says. But agencies "could begin to think about how they will schedule if the exemption is lost for home care agencies," he adds. Attorney Agencies don't want to get surprised when a final rule comes down, Zweig cautions. "This is going to be a very heavy burden on agencies" if related lawsuits start materializing, he warns.
Medicare Compliance & Reimbursement
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