🏠Proposed Revision to Domestic Service Labor Regulations
Application of the Fair Labor Standards Act to Domestic Service
Summary
In 1974, Congress applied the Fair Labor Standards Act (FLSA) to "domestic service" employees, but exempted employees who provide "companionship services" from the minimum wage and overtime requirements and also exempted live-in domestic service employees from overtime. In 1975, the Department promulgated regulations defining companionship services and permitting third party employers to claim these exemptions. These regulations remained substantially unchanged for nearly 40 years. In 2013, the Department revised the regulations to narrow the definition of companionship services and prevent third party employers from claiming either of the exemptions. Because the Department is concerned that the 2013 regulations might not reflect the best interpretation of the FLSA and might discourage essential companionship services by making these services more expensive, the Department is proposing to return to the 1975 regulations. This summary can be found at https://www.regulations.gov by searching by the RIN: 1235-AA51.
Agencies
- Labor Department
- Wage and Hour Division
Business Impact
$$$ - High
The proposed rule seeks to revert to 1975 regulations under the Fair Labor Standards Act, allowing third-party employers to claim exemptions for companionship and live-in domestic service employees, which significantly impacts labor costs and potential hiring practices in the home care industry.