ESA Proposed Rule

Application of the Fair Labor Standards Act to Domestic Service [04/08/2002]

Volume 67, Number 67, Page 16668

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DEPARTMENT OF LABOR

Employment Standards Administration; Wage and Hour Division

29 CFR Part 552

RIN 1215-AA82

 
Application of the Fair Labor Standards Act to Domestic Service

AGENCY: Wage and Hour Division, Employment Standards Administration, 
Labor.

ACTION: Proposed rule; withdrawal.

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SUMMARY: The Department of Labor is withdrawing an earlier proposed 
rule, published in the Federal Register on January 19, 2001 (66 FR 
5481), pertaining to the Fair Labor Standards Act (FLSA) exemption for 
individuals who provide companionship services. For the reasons 
discussed below, the Department has decided to terminate this 
rulemaking proceeding.

DATES: This withdrawal is made on April 18, 2002.

FOR FURTHER INFORMATION CONTACT: Richard M. Brennan, Deputy Director, 
Office of Enforcement Policy, Wage and Hour Division, Employment 
Standards Administration, U.S. Department of Labor, Room S-3510, 200 
Constitution Avenue, NW., Washington, D.C. 20210; telephone (202) 693-
0745. This is not a toll free number.

SUPPLEMENTARY INFORMATION: The Department is withdrawing the proposed 
rule pertaining to the FLSA exemption for individuals who provide 
companionship services, and terminating the rulemaking proceeding. The 
proposed rule, published on January 19, 2001 (66 FR 5481), proposed 
revisions to the regulations defining and interpreting the minimum wage 
and overtime exemption under section 13(a)(15) of the FLSA for 
employees in domestic service employment who provide ``companionship 
services'' to individuals unable to care for themselves because of age 
or infirmity. The Department proposed to amend the regulations to make 
the companionship exemption inapplicable if the worker was employed by 
someone other than a member of the family in whose home he or she 
worked. The Department also proposed to modify the scope of the 
permissible duties of a companion. In the proposed rule, the Department 
had concluded that there would be little economic impact on affected 
entities if such workers were not exempt from the FLSA's minimum wage 
and overtime pay requirements. However, numerous commenters on the 
proposed rule, including multiple government agencies such as the Small 
Business Administration and the Department of Health and Human 
Services, seriously called into question the Department's conclusion 
that there would be little economic impact. Based on its review of the 
rulemaking record as a whole, the Department has decided to withdraw 
the proposed rule and terminate the rulemaking action.

Document Preparation

    This document was prepared under the direction and control of Tammy 
D. McCutchen, Administrator, Wage and Hour Division, Employment 
Standards Administration, U.S. Department of Labor.

    Signed at Washington, DC, on this 29th day of March, 2002.
Tammy D. McCutchen,
Administrator, Wage and Hour Division.
[FR Doc. 02-8382 Filed 4-5-02; 8:45 am]
BILLING CODE 4510-27-M