FLSA changes will significantly affect companion workers

A drastic change to compensation rules for companionship workers means that employers of people providing the service will likely have more use for attendance tracking software.

Many employees engaged in providing companion services will become eligible for minimum wage and overtime protections at the beginning of 2015, according to attorney Michael Miller of law firm Briggs and Morgan. However, some workers that are directly employed by individuals or families living in residences will still be exempt from the Fair Labor Standards Act minimum requirements.

Anyone engaged in providing companionship and employed by an agency or other commercial operation will automatically qualify for minimum wage and overtime under the FLSA. A joint agreement between a third-party employer and a private household won't be enough to neutralize the wage and overtime requirements.

The new regulations provided by the Department of Labor emphasize the changes in the home care and companionship industries since the regulations were created in 1975.

Companies that provide companionship services will have a greater need to accurately record hours worked and properly pay staff because of the more stringent guidelines. Employee management software can help these organizations produce correct records and paychecks.


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