New Regulations Regarding Overtime for Direct Care Workers

Effective January 1, 2015, direct care workers employed by agencies and other third-party employers are entitled to receive at least the federal minimum wage and overtime pay. Direct care workers are workers who provide home care services, such as certified nursing assistants, home health aides, personal care aides, caregivers, and companions.

The Fair Labor Standards Act’s minimum wage and overtime protection is being extended to workers who provide essential home care assistance to elderly people and people with illnesses, injuries, or disabilities. This will impact nearly two million direct care workers — such as home health aides, personal care aides and certified nursing assistants — and have a major impact on their employers.

What Can Agencies Do to Get Ready?

Overtime cannot be eliminated, but it can be managed.

Implement an Advanced Employee Scheduling Solution

  1. Organize schedules to distribute work evenly over the workforce
  2. Use an advanced search engine to avoid staff in overtime when filling open positions
  3. Reduce absenteeism with daily schedule email reminders to staff

Track Actual attendance in Real Time

    1. Use telephone timekeeping to verify visits in real time
    2. Give managers the tools they need to manage the workforce
    3. Eliminate low level timesheet fraud that contributes to overtime

Use Workforce Analytics

    1. Track where overtime is occurring by employee, manager and client
    2. Generate overtime bar graph trend reports by manager and division
    3. Automatically calculate bonuses for managers who control overtime