U.S. DOL’s Final Rule Limiting Domestic Services Imposes Heavy Burden on Household Direct Hires

Executive Summary: Individuals and families who for years have directly employed domestic workers to care for elderly or ill family members will see their labor costs increase dramatically beginning January 1, 2015. Under the U.S. DOL’s Final Rule Limiting Domestic Services, the Fair Labor Standards Act’s “companionship exemption” will only cover workers whose primary duty is “eldersitting” and not “care” services. The Final Rule also provides detailed interpretations of “hours worked” rules as applied to these workers. Even before January 1, 2015, in states that follow U.S. DOL hours worked rules, this may expose individuals and families to claims by state Departments of Labor and lawsuits by plaintiffs’ lawyers under state law.