DOL Announces Time-limited Non-enforcement of FLSA Rules for Domestic Service Workers | Practical Law

DOL Announces Time-limited Non-enforcement of FLSA Rules for Domestic Service Workers | Practical Law

This wage and hour update discusses the Department of Labor's (DOL) Wage and Hour Division's (WHD) publication of a policy statement announcing time-limited non-enforcement of the new rule applying the Fair Labor Standards Act (FLSA) to domestic service workers.

DOL Announces Time-limited Non-enforcement of FLSA Rules for Domestic Service Workers

by Practical Law Labor & Employment
Published on 13 Oct 2014 • USA (National/Federal)
This wage and hour update discusses the Department of Labor's (DOL) Wage and Hour Division's (WHD) publication of a policy statement announcing time-limited non-enforcement of the new rule applying the Fair Labor Standards Act (FLSA) to domestic service workers.
On October 9, 2014, the DOL's Wage and Hour Division (WHD) published a Policy Statement announcing time-limited non-enforcement of its new rule applying the FLSA to domestic service workers (Home Care Final Rule). The Home Care Final Rule becomes effective January 1, 2015.
For more information about the Home Care Final Rule, which the DOL announced on September 17, 2013, and which provides minimum wage and overtime protections to direct care workers who provide essential home care assistance to the elderly and people with illnesses, injuries or disabilities, see Legal Update, Major Developments in the FLSA's Final Rule for Domestic Service.
Despite the fact that the DOL has received requests to extend the effective date of the Home Care Final Rule, it will still go into effect on January 1, 2015, as planned, because:
  • The regulated community will have had 15 months to make the adjustments necessary to fulfill the new FLSA obligations.
  • Many employers, including states, are prepared to start paying home care workers in compliance with the new FLSA obligations on January 1, 2015.
However, recognizing that the Home Care Final Rule's implementation raises sensitive issues, particularly among individuals who rely on home care, the DOL's policy statement announces a period of time-limited non-enforcement lasting 12 months. Specifically, the DOL will:
  • Not bring enforcement actions against any employer that violates its FLSA obligations under the Home Care Final Rule for the six-month period of January 1, 2015 to June 30, 2015.
  • Exercise prosecutorial discretion when determining whether to bring enforcement actions in the home care context from July 1, 2015 to December 31, 2015.
When determining whether to bring enforcement actions, the DOL will:
  • Give particular consideration to the extent to which:
    • employers have made any adjustments necessary to implement the Home Care Final Rule; and
    • states and other entities have made good faith efforts to bring their home care programs into compliance with the FLSA since the effective date.
  • Consider other factors, including:
    • the DOL's limited resources;
    • the extent of the violations at issue; and
    • the impact of a particular enforcement action on compliance more broadly.
Throughout the 12-month period of DOL non-enforcement, the DOL will continue to engage in extensive outreach and technical assistance efforts, especially to state-funded home care programs.