Supreme Court Denies Stay in Companionship Exemption Rule

The National Association for Home Care and Hospice (NAHC) reported last Tuesday that Chief Justice Roberts of the U.S. Supreme Court denied NAHC’s Application for a Stay of the Court of Appeals ruling in the lawsuit challenging the U.S. Department of Labor’s rule affecting minimum wage and overtime compensation for home care aides and live-in personal care services (known as the “companionship exemption” of the Fair Labor Standards Act, or FLSA).

According to a memo from the Department of Labor, enforcement of the rule won’t begin before November 12 , however the rule takes effect tomorrow, October 13. What this means is home care agencies and other home service providers that do not pay overtime for aides at time-and-a half of the aide’s regular pay must do so and agencies must keep more detailed records for live-in cases. Meanwhile, NAHC and its co-plaintiffs are evaluating whether to ask the Supreme Court to hear the case on the merits while the new rules are in effect. It takes four justices to agree to hear the case out of the full Court of nine justices and a majority of five to overturn the appellate court’s ruling.