DOL Issues Wages Guidance for Employers of Home Care Workers

Last week, the U.S. Department of Labor (DOL) issued guidance on section 3(m) of the Fair Labor Standards Act, which, under certain circumstances, allows an employer to count as wages “the reasonable cost … to the employer of furnishing such employee with board, lodging, or other facilities.”

Because federal minimum wage and overtime protections now apply to home care workers, the DOL says that many employers of home care workers will be able to take advantage of the section 3(m) credit.

The new guidance explains the requirements for taking a lodging credit under section 3(m) of the Fair Labor Standards Act (FLSA), as well as the proper method of accounting for this credit in calculating wages, with many examples involving home care workers. You can access links to the new guidance and a helpful FAQ here.