New OT Rules for Direct Care Workers Take Effect Jan. 1

December 16, 2014 | By Martin J. Boetcher | Business & Employment | Contact the Author

(Update 3/26/2015 : The new U.S. Department of Labor overtime regulations for direct care workers are being challenged in court. In January, a Federal judge in the U.S. District Court for the District of Columbia invalidated the new regulation. The case is known as Home Care Association of America v David Weil, et.al. The DOL has appealed that decision to the U.S. Court of Appeals for the District of Columbia Circuit where the case is currently pending. The outcome of that appellate case should give employers who provide home care services clarification as to whether or not the new regulations will be upheld. An earlier version of this blog appeared in the Business Journal Legal Solutions column.)

The U.S. Department of Labor's new overtime regulations for direct care workers go into effect on January 1, 2015.

The new regulations cover those who provide home care services, such as home health aides, personal care aides, certified nursing assistants, caregivers and companions.

In March, President Obama directed the Secretary of Labor to update federal regulations as to who qualifies for overtime protections and who is “exempt” under the Fair Labor Standards Act.

The new regulations clarify that most direct care workers are no longer considered exempt and thus must be paid overtime at 1 ½ times their regular rate for hours worked beyond 40 per week.

Under the new regulations, most direct care workers would not qualify for an exemption from overtime.

Also, exemptions to overtime for companionship service and live-in domestic service employees are now limited to individuals, families and households who use those services. Third-party employers of direct care workers, such as home-care staffing agencies, are no longer permitted to claim either exemption.

This means most direct care workers will be entitled to overtime pay for working more than 40 hours per week.

Although the new overtime regulations go into effect January 1, the Department of Labor has indicated it would delay enforcement for six months to allow employers to get ready to comply.

However, since the law will still go into effect as scheduled, employers should take steps now to ensure they are in compliance.

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Martin J. Boetcher is an attorney practicing employment law with Harrington, Hoppe & Mitchell, Ltd. He can be reached at mboetcher@hhmlaw.com or at (330) 744-1111.