§ 3.2.37 Companionship Workers and Caregivers.
Historically, DOL regulations have exempted home health aides and companionship providers who work for a third party as well as for the individuals directly receiving the services.263 The regulations were adopted at a time when third-party care was provided primarily in institutions and in-home care consisted primarily of assistance with tasks of daily living and providing companionship. In recent years, an entire industry has sprung up in which companies provide companionship services at home rather than just in institutions. In response, in December of 2011 the DOL adopted proposed regulations, and in October of 2013 issued final regulations denying the application of the exemption to companionship workers employed by commercial companies as opposed to private individuals.264 The final regulations were initially issued as effective January 1, 2015.
A group of trade associations filed suit seeking to invalidate the final regulation under the Administrative Procedure Act. In response, the district court granted partial summary judgment invalidating the third-party employer regulations.265 The DOL appealed that decision and on August 21, 2015, the United States Court of Appeals for the District of Columbia Circuit overturned...
