According to a study by the International Franchise Association, the U.S. Department of Labor's proposal to cut overtime exemptions, which affects hundreds of thousands of workers in the companion care industry, would significantly increase the cost of care for seniors and hamper a growing market that has created thousands of new jobs.

"This is a solution to a problem that does not exist and will only harm those who need companion care the most, our nation's seniors," says IFA President and CEO Steve Caldeira. "By requiring overtime pay for companion care workers, the Department of Labor is continuing its track record of imposing costly, burdensome and unnecessary regulations at a time when an increasing number of seniors are enjoying companion care as a cost-effective alternative to traditional care. We urge the DOL to withdraw its proposal in light of the impact this regulation will have on workers, small-business owners and clients, including many seniors in the companion care industry."

The report, Economic Impact of Eliminating the FLSA Exemption for Companionship Services, comes after a Dec. 27, 2011, Notice for Proposed Rulemaking (76 Fed. Reg. 81190) that cuts the exemption from minimum wage and overtime provisions for workers providing companionship and live-in domestic services. A comment period was initially scheduled to end Feb. 27, but after reviewing requests for an extension of up to 90 days from members of Congress and the public, the comment period was extended to Monday, March 12.