What law permits employers to deny overtime and minimum wage?
When Congress enacted the Fair Labor Standards Act (FLSA), it exempted, among others, “domestic workers” and workers that provide “companionship services” to “individuals who “because of “age or infirmity are unable to care for themselves.” The Department of Labor applied this exception to home care agencies employing workers that provide care in people’s homes. 29 CFR § 552.109 (a). Ms. Coke filed a lawsuit challenging the exception under the law, and the Department’s interpretation of it. After Ms Coke won in federal court, the Department of Labor issued an “advisory memo” restating its view and asked the Supreme Court to enforce its rule. • What did the Supreme Court Decide? The Supreme Court decided that the Department of Labor’s interpretation of the congressional law is valid. In doing so, the court reaffirmed what has been the status quo since the inception of the FLSA; namely, direct care workers working in people’s homes are exempted from minimum wage and overtime protections
