Dive Brief:
- The Department of Labor won't enforce the new wage rule requiring higher pay and overtime pay for home healthcare workers despite the District of Columbia Circuit Court upholding the rule.
- The court must issue a mandate making its opinion effective first, and then 30-days post-mandate the rule will go into effect. Currently, it's not clear when the mandate will come as industry groups are attempting to appeal to the U.S. Supreme Court.
- Home healthcare agencies have not been required to pay minimum wage or overtime pay to companionship workers who provide "fellowship, care and protection" to seniors and the disabled. The new rule would narrow the definition of companionship workers to those who spend a maximum of 20% of their time providing actual care. In addition, companionship workers employed by third parties would no longer be exempt from wage protections.
Dive Insight:
Industry groups challenging the rule include the Home Care Association of America, The International Franchise Association and the National Association for Home Care & Hospice. They asked the appellate court to delay implementing the rule in order to appeal the case to the Supreme Court. According to American Health Line, the groups said in court documents a Supreme Court decision could "provide certainty for the entire industry and the millions of elderly and disabled consumers who depend on its vital services."
The DOL has asked the court to issue its mandate quickly, stating in court documents the industry groups' "contention that the final rule will harm consumers and workers was rejected in rulemaking comments submitted by consumer advocates, labor representatives and industry experts."
Mark Peters, a partner at Waller Lansden Dortch & Davis law firm, told Modern Healthcare: "Given the impact of issuing the mandate early, which would effectively require a significant number of companies to change the way in which they are paying their employees, I suspect the court would be inclined to stay issuance of the mandate until all the appeals have been exhausted."
However, DOL said it will "exercise discretion" until the end of the year in pursuing noncompliance once the rule goes into effect.