---
title: "Home care groups file petition to hear overtime case"
url: https://burnaze.com/article/7a1a4e2c-e39d-4512-a9c3-312f7ec2e8e0
source: "1851 Franchise"
original_url: https://1851franchise.com/home-care-groups-file-petition-to-hear-overtime-case-2974
category: "Home care"
industry: "Senior Care"
segment: "Home care"
published: 2015-11-25T20:15:06.000Z
modified: 2026-11-01T13:25:15.186Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/583d49d61e29037f1e9ddc5c335094b9412151125152039.png
---

# Home care groups file petition to hear overtime case

**TL;DR:** Home care groups, including the IFA, are challenging new US Department of Labor regulations that require overtime pay for home-care aides, arguing that the administration exceeded its regulatory authority. The new ruling may harm some workers and clients due to increased costs and reduced overtime and overall wages.

*originally published in 1851 Franchise on 2015-11-25. [Read the original](https://1851franchise.com/home-care-groups-file-petition-to-hear-overtime-case-2974).*

## Story

New U.S. Department of Labor regulations mean almost two million home-care aides, who often work long and unpredictable hours, will be paid time-and-a-half for clocking more than 40 hours a week. But the new ruling may be doing more harm than good for some workers and the clients they set out to help—the changes amount to an unfunded mandate, leaving many small businesses already facing low margins struggling to find a way to pay for it.

The rule ends the so-called “companionship services exemption” for personal care assistants who help elderly and individuals with special needs stay in their homes through subsidized care.

“We believe the rule is the right policy,” a U.S. Department of Labor announcement says. “Both for those employees, whose demanding work merits these fundamental wage guarantees, and for recipients of services, who deserve a stable and professional workforce allowing them to remain in their homes and communities.”

Many providers are already seeing the fallout that some predicted all along—increased costs and confusion among care recipients, along with reduced overtime and overall wages for some home-care workers. Facing finite funding, home care agencies have begun pro-rating their hourly rates in response to their increased labor costs. Hourly wages get adjusted downward to compensate for increased overtime pay, allowing agencies to meet Washington’s new rule while maintaining employees’ total hour and pay.

This week, the IFA, the Home Care Association of America and the National Association for Home Care and Hospice announced that an appeal was filed with the U.S. Supreme Court to review the new regulations. The groups are challenging the new rule, arguing that the administration exceeded its regulatory authority.

“Without increasing spending from government home care programs or imposing higher charges to vulnerable patients, home care aide employers can only restrict working hours and avoid overtime pay,” states the National Association for Home Care and Hospice website.

## Entities

- 1851 Franchise (publication)
- Senior Care (sector)
- IFA (company)
- home care (topic)
- U.S. Department of Labor (regulator)
- labor regulations (topic)
- U.S. Supreme Court (regulator)
- overtime pay (topic)
- us department of labor (topic)

---
Originally reported by 1851 Franchise (https://1851franchise.com/home-care-groups-file-petition-to-hear-overtime-case-2974). Summarized by Burnaze (https://burnaze.com/article/7a1a4e2c-e39d-4512-a9c3-312f7ec2e8e0).