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GAO-14-141R 1 (2013-10-30)

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GAOU.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-325223


October 30, 2013

The Honorable Tom Harkin
Chairman
The Honorable Lamar Alexander
Ranking Member
Committee on Health, Education, Labor, and Pensions
United States Senate

The Honorable John Kline
Chairman
The Honorable George Miller
Ranking Member
Committee on Education and the Workforce
House of Representatives

Subject: Department of Labor, Wage and Hour Division: Application of the Fair Labor Standards
        Act to Domestic Service

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Labor (Labor), Wage and Hour Division entitled Application
of the Fair Labor Standards Act to Domestic Service (RIN: 1235-AA05). We received the rule
on September 30, 2013. It was published in the Federal Register as a final rule on October 1,
2013, with an effective date of January 1, 2015. 78 Fed. Reg. 60,454.

The final rule revises Labor's 1975 regulations implementing amendments to the Fair Labor
Standards Act (FLSA or the Act) to better reflect congressional intent given the changes to the
home care industry and workforce since that time. In 1974, Congress extended the protections
of the Act to domestic service employees, but it exempted from the Act's minimum wage and
overtime provisions domestic service employees who provide companionship services to
elderly people or people with illnesses, injuries, or disabilities who require assistance in caring
for themselves, and it exempted from the Act's overtime provision domestic service employees
who reside in the household in which they provide services. Most significantly, Labor is revising
the definition of companionship services to clarify and narrow the duties that fall within the
term; in addition, third-party employers, such as home care agencies, will not be able to claim
either of the exemptions. The major effect of the final rule is that more domestic service
workers will be protected by the FLSA's minimum wage, overtime, and recordkeeping
provisions.

Enclosed is our assessment of Labor's compliance with the procedural steps required by
section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our review of the
procedural steps taken indicates that Labor complied with the applicable requirements.


GAO-14-141R

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