Where a worker is performing duties that fit within the definition of companionship services, the individual receiving services (or his or her family or household) may claim the companionship services exemption, but any third party employer of that worker may not. This means that the third party employer is responsible for ensuring that the worker is paid minimum wage and/or overtime compensation in compliance with the Fair Labor Standards Act and the individual, family, or household will not be held responsible for any wages that are not paid.
The same is true of the live-in domestic service employee exemption. No third party employer may claim the exemption, but an individual, family, or household may claim it the worker meets the exemption’s residency requirements. In other words, if the exemption is properly claimed, the individual, family, or household will not be held responsible for any overtime compensation the third party employer fails to pay.
October 2018
Tags: Home care agencies and other third party employers
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