Home care agencies now have another six months before enforcement will begin on the national minimum wage and overtime requirements.
 
The Labor Department announced Oct. 7 that it would delay enforcement until July 1. The requirement goes into effect Jan. 1, but delaying enforcement “will best serve the goals of rewarding hard work with a fair wage while not disrupting innovative direct care services,” according to a release from Laura Fortman, deputy administrator of the department’s wage and hour division.
 
 “Any extra time is helpful for agencies,” Indianapolis labor attorney John Gilliland says. “Many agencies are in the stage of trying to figure out what they’re going to do three months from now.” Labor has decided to give health care providers additional time, because it would be helpful for them to comply and work out additional details, Gilliland says.
 
Beginning in July, however, Labor could investigate any agencies it feels have not made an effort to comply. It’s possible those agencies might have to provide employees with back pay and be forced to agree to comply with wage and hour laws in the future, Gilliland says.
 
When the Labor Department initially announced the exemption would end, it provided a 15-month implementation period before its effective date. “We did so out of recognition that home care services financing is complex and that making adjustments to operations, programs and budgets in order to comply with the rule would take time,” the release states.
 
In the second half of this year, the Labor Department “will exercise its discretion in determining whether to bring enforcement actions, giving strong consideration to the extent to which states and other entities have made good-faith efforts to bring their home care programs into Fair Labor Standards Act (FLSA) compliance,” the release states.
 
The delay in enforcement is “welcome news,” according to a release from the Home Care Association of America (HCAOA). However, the association cautions that “the FLSA permits private individuals to file lawsuits alleging that employers have committed a violation.” As a result, the association says, employers not in compliance by Jan. 1 could be exposed to private litigation.
 
 
For strategies and tools to comply with new overtime requirements, sign up for the 17th annual National Private Duty Conference and Expo on Nov. 19-21 at the Encore in Las Vegas. Get full details at: www.privatedutyconference.com.