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News Briefs

By ALM Staff | Law Journal Newsletters |
October 02, 2013

New Federal Rule Likely To Raise Costs for Home Healthcare Franchises in 2015

Effective on Jan. 1, 2015, minimum wage and overtime rules will apply to the nearly 2 million home healthcare workers in the U.S., according to new rules issued by the U.S. Department of Labor in September under the Fair Labor Standards Act (FLSA). These low-wage “companions” or “domestic workers” provide services in the homes of their clients, rather than in institutional settings.

With home healthcare one of the fastest-growing segments of the franchise industry, the International Franchise Association (IFA) denounced the rules as imposing “costly, burdensome and unnecessary regulations at a time when an increasing number of seniors are enjoying in-home companion care as a cost-effective alternative to traditional care.”

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