Fair Labor Standards Act

On January 1st, 2015, several changes to the Fair Labor Standards Act, or FLSA, went 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.

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.