On January 1st, 2015, several changes to the Fair Labor Standards Act, or FLSA, will go into effect, impacting your employee compensation requirements.
According to the United States Department of Labor:
“The Department has revised its regulations defining companionship services so that many direct care workers, such as certified nursing assistants, home health aides, personal care aides, and other caregivers are protected by the FLSA. The Department also revised the regulations concerning live-in domestic service workers. The new regulations are effective January 1, 2015.”
For detailed information from the Department of Labor, refer to their FAQ site here.
What does this mean to you?
In summary, companion and live-in care services provided by commercial agencies no longer qualify for the Domestic Services exemption to the FLSA. Starting in 2015, agencies will be required to pay their care providers minimum wage, overtime wages for hours worked greater than 40 hours per week, travel time wages and account for sleep time interruptions in 24 hour service shifts.
At first glance, this may appear very overwhelming but eRSP is here to help you with this transition. eRSP has several robust safeguards, payroll features and reports to assist with handling the new labor law requirements.
- Daily and Weekly Max Hours Alerts
- Daily and Weekly Max Hour Calendar Conflicts
eRSP Payroll Features for FLSA
- Automatic Overtime and Holiday pay calculation
- Automatic 24 Hour Fixed Pay Conversion to Hourly
- Travel Time (New)
- Blended Rates
- Labor Cost and Margins Reports
- Payroll Preview Report
- Max Hours Report
We are here and ready to help
We have posted several new articles and videos in eRSP Support Site that provide overviews and more detailed instructions on all of the features and tools available to help you with the upcoming changes. Simply use the keyword ‘FLSA’ in the Search Help box at the top of any eRSP page to access all of our help articles and videos on this topic. In addition, starting on October 23rd, 2014, we will be offering a weekly webinar every Thursday at 3pm EST to walk through these features. To register for the webinar, click the ‘Need Support?’ link at the top of eRSP, and scroll down to the ‘Weekly Webinars’ section to sign up. As always, you can contact eRSP Support Line and we are happy to help answer any questions you may have.