Federal Court Vacates Second and Final Major Provision of the Department of Labor's Home Care Rule

On Wednesday, January 14, 2015, the U.S. District Court for the District of Columbia vacated the U.S. Department of Labor's new rule that purported to narrow the definition of "companionship services" exempt from overtime under the Fair Labor Standards Act.  Rejecting the DOL's arguments in support of the new rule, the court found that the statutory exemption of home care companions "clearly targets workers who provide services to those who need care. . . . Limiting that care to only 20 percent of a worker's total hours defies logic, and Congressional intent."  The court concluded, "Here, yet again, the [DOL] is trying to do through regulation what must be done through legislation.  And, therefore, it too must be vacated." Continue reading this entry at Littler's Healthcare Employment Counsel.