Third party employers must pay at least the Federal minimum wage and overtime pay to all workers employed to perform domestic service employment, including workers who perform companionship services or are live-in domestic service employees.
Third party employers must pay home care workers for all hours those employees work. Hours worked include time spent traveling between multiple individuals receiving services if the third party employer is an employer as to each individual; for example, if a home care agency assigns a worker to provided services to one of its clients in the mornings and another in the afternoons, the time the worker spends driving from one client’s home to the other’s must be paid. In addition, a third party employer is responsible for any overtime generated by working for multiple individuals receiving services; for example, if a state administering a Medicaid-funded, consumer-directed program is a joint employer of the care providers hired through the program, a worker who provides 30 hours of services to one Medicaid recipient enrolled in the program and 20 hours of services to another must ensure that the worker receives 10 hours of overtime compensation.
Third party employers must maintain records for each employee working in domestic service employment just as employers are required to maintain records for any other non-exempt employee. See Fact Sheet #79C: Recordkeeping Requirements for Individuals, Families, or Households who Employ Domestic Service Workers Under the Fair Labor Standards Act (FLSA).
October 2018
Tags: Home care agencies and other third party employers
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