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Supreme Court Rules "Companions" Are Not Entitled To Overtime And Minimum Wage In Connecticut, New York, And Vermont

June 22, 2007

The U.S. Supreme Court has ruled that an exemption from the payment of overtime wages to so-called companionship employees does apply to third party employers, reversing two previous decisions of the Second Circuit Court of Appeals. The Second Circuit, which covers Connecticut, New York, and Vermont, had ruled that employees serving as "companions" to the clients of eldercare and healthcare organizations are entitled to overtime for any hours worked over 40 in a week, and are also entitled to minimum wage. The lower court's decision was a departure from regulations promulgated by the United States Department of Labor and from a specific opinion letter issued by the Department of Labor on this issue.

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