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Wednesday, October 14, 2015

Federal rule goes into effect extending minimum wage and overtime to home care workers

The U. S. Department of Labor rule requiring minimum wage and overtime pay for home care workers overcame a challenge in federal court and went into effect October 13.

Overtime pay is for hours worked in excess of 40 hours per week at the rate of 1.5 hours of pay for every overtime hour worked.

States must incorporate these changes into their overall Medicaid reimbursement plan for service providers, including independent providers.

The labor department has announced a transition period. It will delay enforcement of the new rule until November 12 and from that date through December 31, will exercise “prosecutorial discretion” in deciding whether to bring enforcement actions against states and other entities that have made good faith efforts to comply with the Fair Labor Standards Act.

For more information, see the U.S. Department of Labor website.

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