Fair Labor Standards Act

On January 1st, 2015, several changes to the Fair Labor Standards Act, or FLSA, will go into effect, impacting your employee compensation requirements. According to the United States Department of Labor:

The Department has revised its regulations defining companionship services so that many direct care workers, such as certified nursing assistants, home health aides, personal care aides, and other caregivers are protected by the FLSA. The Department also revised the regulations concerning live-in domestic service workers. The new regulations are effective January 1, 2015."

For detailed information from the Department of Labor, refer to their FAQ site >> here.

What does this mean to you?

In summary, companion and live-in care services provided by commercial agencies no longer qualify for the Domestic Services exemption to the FLSA. Starting in 2015, agencies will be required to pay their care providers minimum wage, overtime wages for hours worked greater than 40 hours per week, travel time wages and account for sleep time interruptions in 24 hour service shifts.

At first glance, this may appear very overwhelming but eRSP is here to help you with this transition. eRSP has several robust safeguards, payroll features and reports to assist with handling the new labor law requirements.

OT Safeguards


The eRSP™ Calendar provides fully integrated safeguards to warn you of potential overtime shifts.
  • Daily and Weekly Max Hours Alerts
  • Max Hours Calendar Conflicts

eRSP™ Payroll


The eRSP™ Payroll Module includes the following customizable features to help you with meeting the FLSA requirements.
  • Automatic Overtime Calculations
  • 24 Hour Fixed Pay Conversion to Hourly
  • Travel Time
  • Blended Rate Calculation

Reports


The following are reports to assist you in understanding your cost, margins and expected payroll results before you run your payroll build.
  • Margins
  • Labor Cost
  • Payroll Preview
  • Max Hours



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Kaleida Systems takes security and data protection very seriously. eRSP™ is HIPAA compliant and SSAE 16 Certified.