Compensating Home Care Workers

  • By Your mom
  • 02 Sep, 2014
 Effective January 1, 2015, changes to federal and Connecticut law will impact the
compensation of home care workers. Federal DOL Final Rule Fact Sheet and Public Act 14-159.
Home care workers typically provide “companionship services,” including “fellowship” and
“protection,” for elderly or disabled persons. “Fellowship” is defined as engaging the person in
social, physical and mental activities, while “protection” means being present in the person’s
home, or accompanying them outside to monitor their safety and well-being. Examples of
companionship services include conversation, reading, games, crafts, accompanying a person on
a walk, running errands, and attending appointments and social events. Companionship services
differ from “care,” which includes assistance with activities of daily living, such as dressing,
grooming, feeding, bathing, toileting and transferring.

 Home care workers are typically hired directly by the person in need or their family, or
through a third party home care agency that directly employs the worker. A different set of rules
now applies to each hiring arrangement.

 Under the new rules, where the individual in need, or their family, directly hire the home
care worker, the worker need not be paid the minimum wage, or overtime for work in excess of
40 hours in a workweek. This is because these workers are covered by a special “domestic
service exemption” in the federal Fair Labor Standards Act, and under Connecticut law. The
special exemption is lost, however, if the employee spends more than 20% of their time
performing “care” duties during any workweek. Also, if the worker performs any household
work that primarily benefits other members in the household beyond the person needing help,
such as cooking for the entire family or doing their laundry, they must be paid the minimum
wage and overtime for that week. Likewise if the worker performs any “medically related
services” such as catheter care, turning and repositioning, ostomy care, tube feeding, or physical
therapy, they must be paid the minimum wage and overtime for that week.

 When the worker is hired through a third party agency, the agency must now pay the
worker the minimum wage and overtime, even if the worker only provides “companionship
services.” In effect, agencies may no longer take advantage of the “domestic service
exemption.” That exemption now only applies to workers hired directly by the person in need of
care, or their family.

 However, agency employers can now count certain hours as non-work time under
specific conditions. Provided the employee is performing “companionship services” and is
required to be present at the worksite for a period of not less than 24 consecutive hours, the
employee and employer may agree in writing to exclude a regularly scheduled sleeping period of
not more than 8 hours from hours worked. This exception is only permitted if there are adequate
on-site sleeping facilities for the employee, and the employee actually sleeps at least 5 hours. If
the sleep period is interrupted by an assignment of work, the interruption shall be counted as
work hours. If because of the interruption, the employee fails to get at least 5 hours sleep, the
entire 8 hour period must be counted as work time. Also, even if the employee’s sleep time
exceeds 8 hours, only 8 hours may be excluded from hours worked. Where the employee is on-
site for less than 24 hours, all hours must count as work time, even if the employee sleeps or
engages in non-work activities during the period they are on-site.

 These changes are expected to affect about 2 million home care workers who will now
receive both the minimum wage, and overtime pay for all hours worked in excess of 40 in a
workweek.

 Given the complexity of this topic, I’ve prepared a table summarizing the rules:

Type of
Employment

Individual Employer
(Employed by person needing care
or their family)

Third Party Employer
(Agency)

Home Care Worker -As long as worker only provides
“companionship services” there is no
obligation to pay the minimum wage
or overtime
-In any week where over 20% of the
time is spent providing “care,” the
minimum wage and overtime must be
paid in that week
-In any week in which any time is
spent providing “medically related
services,” the minimum wage and
overtime must be paid
-In any week in which any time is
spent performing household work
primarily benefiting other than the
person in need of care, the minimum
wage and overtime must be paid

-Must pay the worker the
minimum wage and overtime
even if they only provide
“companionship services”
-Can have a written
agreement deducting up to 8
hours from work time for
sleep each day, if the worker
is on site at least 24 hours,
and gets at least 5 hours of
actual sleep. Any time spent
providing services during the
8 hour sleep period must be
paid.

Domestic Live-In
(Housekeeper)

-Worker must be paid minimum
wage, but not overtime
-Can have written agreement
deducting a reasonable number of
hours for sleep and other personal
time

-Worker must be paid
minimum wage and overtime
-Can have written agreement
deducting a reasonable
number of hours for sleep and
other personal time