On December 15, 2011, President Obama and Labor Secretary Hilda Solis announced that the Labor Department will soon issue a proposed rule that would limit the “companionship services” exemption under the Fair Labor Standards Act (“FLSA”). The proposed rule will likely be published within two weeks.
The FLSA currently exempts workers who provide “companionship services” from its minimum wage and overtime provisions. The proposed rule would limit the definition of “companionship services” to “fellowship” and “protection.” All in-home care workers employed by third-party employers, such as staffing agencies, would no longer be exempted under the proposed rule.
Following the publication of the proposed rule, the public will have 60 days to comment. A draft of the proposed rule is available athttp://op.bna.com/dlrcases.nsf/r?Open=gcii-8pkqzs.