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New Rules for Paying Home Caregivers

New Rules for Paying Home Caregivers

A federal appeals court has reinstated regulations to extend the minimum wage and overtime minimum wage and overtime protection provisions to workers who provide home care for the elderly and disabled.

This decision removes an exemption in federal minimum wage and overtime laws for those employed by third-party staffing agencies or other third-party employers. Over 2 million workers are affected, including employers of full-time certified nursing assistance, home health aides, personal care aides, caregivers and companions.  However, the decision does not apply to part-time caregivers who provide companionship.

The federal minimum wage is now $7.25 an hour, but many states have their own minimum wage laws. The one with the higher rate prevails. Workers who are covered by the federal overtime pay provisions must be paid not less than one and one-half times their regular rate after 40 hours of work in a workweek.

Based on the decision, be prepared for a higher cost if you engage a third-party employer to provide home caregivers for your loved one.

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