IFA Responds to Court Decision Vacating Companion Care Rule

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FOR IMMEDIATE RELEASE


Contact:

Matthew Haller, 202-460-8356

Jenna Weisbord, 310-995-0839

mhaller@franchise.org

jweisbord@franchise.org


IFA RESPONDS TO COURT DECISION VACATING COMPANION CARE RULE


WASHINGTON, Jan. 14, 2015–International Franchise Association (IFA) Executive Vice President of Government Relations & Public Policy Robert Cresanti released the following statement on the court’s decision in  Home Care Association of America et al v. Weil et al, a lawsuit challenging new U.S. Department of Labor rules eliminating an overtime exemption for companion care workers:


“Today’s ruling is another significant step toward protecting clients, workers and local franchise business owners in the home care industry. It further demonstrates the court’s willingness to stop executive overreach that hurts business owners and reduces business certainty. We appreciate the court’s ruling to hold the Administration accountable for misdirected policies pursued in defiance of congressional intent and legal precedent.”


Judge Richard Leon of the U.S. District Court for the District of Columbia vacated the second and final portion of the new rule altering the definition of “companionship services” to effectively eliminate the use of the companionship exemption in the Fair Labor Standards Act for most workers. On Dec. 22, 2014, Judge Leon vacated the portion of the rule that barred use of the exemption by third-party employers. The Department of Labor rules were challenged in a lawsuit brought by the IFA, National Association for Home Care and Hospice, and Home Care Association of America.  


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About the International Franchise Association

The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 55 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 770,000 franchise establishments, which support nearly 18 million direct and indirect jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.


 


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