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White House proposes FLSA coverage for In-Home Care workers

New White House proposal would extend minimum wage, overtime to 2 million in-home caregivers

The White House announced on Thursday a proposal to expand Fair Labor Standards Act protections to workers who provide home-based care to the elderly and people with disabilities. The White House said that if the rule was implemented it would affect almost two million in-home care workers.

Home health workers provide extensive and challenging services to the elderly and infirm. Currently, many homecare providers earn less than the minimum wage and no overtime pay, though work hours can usually go well beyond 40 hours a week in this profession.

Professional caregivers to be classified correctly under the FLSA
Congress extended FLSA coverage to domestic service workers in 1974, but included an exemption for “companions.” Many home care workers are classified as exempt from receiving overtime pay under the companionship exemption, and most states do not cover these workers under minimum wage or overtime provisions either. 

Congress said this exemption was not meant to exclude professional caregivers from receiving FLSA protections, and that the new regulations would clarify this section of the FLSA.

While some states do provide minimum wage and overtime pay to professional caregivers, there is a disparity nationwide. According to the Department of Labor, this proposal would affect workers on a national level and would make sure that in-home workers are “properly classified so they receive appropriate compensation and that employers who have been treating these workers fairly are no longer at a competitive disadvantage.”

FLSA coverage should expand with home health care boom
Employment in the industry is expected to expand 50% by 2018, with projections of over 2.5 million home health aides and personal care aides. Congress stated that along with the industry boom, FLSA regulations need to be overhauled accordingly.

The regulations for workers in this industry are murky. The FLSA has rules for domestic service workers, companionship workers, and trained nurses. The exemptions can get complicated and many people working as home health aides may be misclassified under the law.

Do you need a health worker exemption review?
If you want to know if you’ve been paid correctly under the law, call our office at 888-449-2068 to have our employment lawyers review your exemption status for free. We have represented workers in wage and hour claims nationwide.