NAHC Files for Summary Judgment in Companionship Services Rule Lawsuit
On August 1, the National Association for Home Care & Hospice, along with co-plaintiffs Home Care Association of America and the International Franchise Association, filed a Memorandum in Support of Motion for Expedited Partial Summary Judgment (the Motion) in the lawsuit challenging new overtime pay rules.
The lawsuit aims to overturn the new Department of Labor rules restricting the application of the companionship services and live-in exemptions to minimum wage and overtime compensation requirements.
Specifically, the Motion seeks to set aside the third-party employer restrictions of the Rule that effectively eliminate the application of the exemptions to home care companies. The lawsuit is an effort to secure an injunction against the enforcement of the new rules before they are scheduled to take effect on January 1, 2015.
New Rule Misapplies Third Party Status
The Motion argues that the Department of Labor (DOL) exceeded its statutory authority by stating in the new Rule that “third party employers of employees engaged in companionship services may not avail themselves of the minimum wage and overtime exception even if the employee is jointly employed by the individual or member of the family or household using the services.” The Motion argues that the new Rule “imposed an unauthorized minimum wage and overtime requirement on employers (and joint employers) solely on the basis of their ‘third party’ status.”
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