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Department of Labor Issues Opinion on Payment Plans for Home Health Aides

Posted on Sunday, January 6, 2019 5:18 PM

The U.S. Department of Labor (DOL) said that the pay for home health aides can vary week to week and can exclude travel time if the minimum wage is still met. 

“The plan calculates weekly pay by multiplying an employee’s time with clients by pay rate, which is typically $10.00 per hour with a client, including travel time,” according to the letter. That number is then divided by total hours worked, which includes time with clients and any travel between client locations.

At a minimum, the employer guarantees that the resulting hourly pay meets both federal and state minimum wage rate requirements, according to the DOL letter. "As such, WHD concluded that the payment calculation complies with FLSA. “

The industry has seen issues with manipulation of overtime pay.  Some agencies are paying full-time employees less on an hourly basis if they normally work overtime, in order to offset their costs.  However, a part-time employee is getting paid a higher rate even if they do work overtime.  This is an issue that needs to be addressed.

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