Overtime Pay Exemption for Companion Caregivers May Change

Recent legislation has been proposed which could change the exemption from overtime pay for companion caregivers.  Read more about this overtime pay exemption legislative initiative and complete the survey below for the National Private Duty Association, an advocate for senior home care agencies.

Survey must be filled out by DECEMBER 31, 2011:  NPDA Companionship Exemption Survey

About the Exemption from Overtime Pay for Companion Caregivers

Under the federal Fair Labor Standards Act, "companionship services" are exempt from minimum wage and overtime pay requirements. In many circumstances, the work done by personal care attendants and home care aides is considered "companionship services" under this law. States can drop the exemption and nearly half the states have done so. 

Presently, the US Department of Labor has developed proposed changes in the existing rule defining companionship services and its application to companies that employ workers providing home care. It is expected that the proposal would significantly alter the long-standing definitions in a manner that would mean that the exemption is no longer applicable to home care employees.

As used in this survey, "companionship services" includes personal care to the elderly and disabled. Housekeeping and chore services are included as companionship services provided that those services are less than 20% of the total time worked by the employee. "Companionship services" may be provided by personnel operating under various labels such as personal care attendant, home care aide, home health aide and others. For purposes of the overtime exemption, it is the functions of the worker that matter, not the job label.

Senior home care agencies must following licensing requirements in their state and hire and caregivers as employees.