A series of proposed regulations requiring home care
workers to receive minimum wage and overtime pay would negatively affect the home care industry, according to a new report from the International Franchise Association.
The labor protection regulation would have a negative impact on more than 4,000 businesses and almost 340,000 companion care workers, the report said.
The Department of Labor is taking a second look at home care workers’ exemption from the Fair Labor Standards Act and is accepting public comments until Feb. 27.
"This is a solution to a problem that does not exist and will only harm those who need companion care
the most, our nation's seniors," said association President and CEO Steve Caldeira. "By requiring overtime pay for companion care workers, the Department of Labor is continuing its track record of imposing costly, burdensome and unnecessary regulations at a time when an increasing number of seniors are enjoying companion care as a cost-effective alternative to traditional care."
The Department of Labor said it is revisiting the regulations because workers employed by in-home staffing agencies are now professional caregivers entitled to FLSA, rather than the workers envisioned by Congress when the companionship exemption was enacted.
“In view of these changes, the Department believes it is appropriate to reconsider whether the scope of the regulations are now too broad and not in harmony with congressional intent," the DOL said.