U.S. District Court Overturns Companionship Exemption Rule Changes

Stephen Tweed | December 23, 2014 | Newsroom
The Home Care  Association of America and  The National Association for Home Care and Hospice announced today that the U.S. District Court for the District of Columbia has ruled in their favor in the case regarding the Companionship Exemption Overtime Rule.  The rule, by Judge Richard J. Leon, grants the plaintiffs' motion and vacates the…

The Home Care  Association of America and  The National Association for Home Care and Hospice announced today that the U.S. District Court for the District of HCAOA vs David WeilColumbia has ruled in their favor in the case regarding the Companionship Exemption Overtime Rule.  The rule, by Judge Richard J. Leon, grants the plaintiffs’ motion and vacates the U.S. Department of Labor’s efforts to deny third party employers access to the exemption under the Fair Labor Standards Act (FLSA).

The Department’s rule set to take effect on January 1, 2015, would have prevented home care companies from using the companionship exemption to avoid paying overtime.  The lawsuit challenged that rule.

According to Judge Leon’s ruling, “The language of the exemption is quite clear: ‘any employee’ who is employed to provide companionship services, or who resides in the household in which he or she is employed to perform domestic services, is covered by the exemption.”

The plaintiffs in the case are seeking a hold on the rule while other portions of the lawsuit are being considered.  While this is a huge win for the home care community, they believe an appeal will be filed by the DOL, so the fight is not over.

Here is a link to the Judge’s Ruling.  

Stay tuned to Private Duty Today and Leading Home Care Report for updates on the status of this lawsuit and the implementation of the DOL rule.
Stephen Tweed
Stephen Tweed is among the top Thought Leaders in Home Care today. As an industry researcher, author, and executive coach, he has worked with owners and CEOs of companies in the top 5% of Home Care and is a frequent speaker at Home Care association conferences and corporate meetings across the US and Canada.

Related Posts

Future of Home Care 2025

November 5, 2024
What are the factors that are affecting the future of Home Care?Many of you were helpful last year as we launched the Future of Home Care 2024 Industry Survey. Well, we're back again with an updated survey. Things are changing rapidly in Home Care, and last year's report was so well received, that we decided…

Extraordinary Transformation: A blueprint for leaders who want to Transform their Organization

June 5, 2024
By Stephen TweedAs a leader in Home Care, are you working on transforming your organization?Are you looking for strategies and insights to grow your business and get ready for the future?I've just finished reading an amazing book by my friend and professional speaking colleague, Dr. Nido Qubein. "Extraordinary Transformation: An Entrepreneurial Blueprint for Leaders Who…

Stephen Tweed’s Podcast and Webinar Appearances

May 30, 2024
As a significant Thought Leader in the Home Care industry, Stephen Tweed is frequently invited to be a guest on industry podcasts and webinars. Here are links to some of Stephen's recent appearances.July 2024 - The Caregivers Toolbox with Ryan McEniff - What Consumers, Caregivers, and Referral Partners want from Home Care. Ryan McEniff is…