November 28, 2022

Volume XII, Number 332

Advertisement
Advertisement

DC Judge Invalidates Home Care Rule re: Exempt Status of Agency Employees

Last evening, the Home Care Association of America followed in the footsteps of the Mortgage Bankers Association, obtaining a ruling that the DOL’s reversal of its position regarding the exempt status of agency-employed “companions” violated the Administrative Procedure Act. Home Care Ass’n of Am. v. Weil, 2014 U.S. Dist. LEXIS 176307 (D.D.C. Dec. 22, 2014). The DOL had issued new regulations drastically curtailing the scope of the exemption, which were scheduled to take effect in January.

Judge Richard Leon of the United States District Court for the District of Columbia held that the DOL’s prior regulations defining “companionship services” and “domestic service employment” filled the “definitional gaps” in the statutory language of 29 U.S.C. § 213(a)(15). “Once those definitional gaps were filled, however, the statutory loop was closed,” and the DOL exceeded its authority by issuing a new rule stating that companions employed by agencies are subject to minimum wage and overtime. In reaching its decision and upholding the challenge to the rule filed by the Home Care Association of America, the Court found that Congress’ intent to exempt such employees from minimum wage and overtime was clear, and that there was no “explicit—or implicit—delegation of authority [by Congress] to the Department to parse groups of employees based on the nature of their employer who otherwise fall within those definitions.”

Please watch this space for further developments.

Jackson Lewis P.C. © 2022National Law Review, Volume IV, Number 357
Advertisement
Advertisement
Advertisement

About this Author

Noel Tripp Principal Employment lawyer at Jackson Lewis Law Firm
Principal

Noel P. Tripp is a Principal in the Long Island, New York, office of Jackson Lewis P.C. Since joining Jackson Lewis as a summer associate in May 2005, he has practiced exclusively in employment law.

Mr. Tripp has been involved in matters pending before federal and state courts and administrative agencies covering the gamut of employment-related matters from discrimination and workplace harassment to wage/hour disputes and affirmative-action compliance. His principal focus is the defense of class and collective action...

631-247-0404
Advertisement
Advertisement
Advertisement