Recent changes to labor regulations for in-home domestic and care workers means accurate employee management software will be more necessary for their third-party employers.

The U.S. Department of Labor has issued changes that make these workers non-exempt employees, according to The National Law Review. The change requires payment of overtime to live-in employees who provide companionship, basic care or domestic services. Additionally, third-party employers will need to keep detailed records of the pay earned and hours worked by caregivers and domestic workers.

Major areas where employers need to pay close attention are maintenance of employee records for three years, adherence to state and local laws on minimum wages and overtime and implementing a useable system for workers who don't regularly come into a central office. An effective method for tracking remote employees is web-based time and attendance software.

Because third-party companies in this field haven't dealt with the overtime system, reviewing the regulations on the Department of Labor website is a good place to start. Employers should know that overtime is calculated on average hourly earnings even if employees are compensated per day or per individual piece of work.

The changes take effect Jan. 1, 2015, so employers have time to find a system that best works for them.

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