Under a long-awaited labor law decision released today, those who provide direct care will receive federal minimum wage and overtime protections.
The repeal of a companionship exemption under federal labor law for the direct care workforce is seen as a “victory” for home care workers that has been two years in the making for the nation’s fastest-growing job force.
But those in the business of home care could suffer under the changes, as could those receiving the care according to the National Association for Home Care and Hospice, which issued a statement following the announcement.
“Like many things that emanate from Washington, the repeal of the companionship exemption is not what it seems. While ostensibly intended to help hard working caregivers, it will have the very opposite effect,” said Andrea L. Devoti, Chairman of the National Association for Home Care & Hospice. “It will mean that people will receive less care. Home care companies will have little choice but to employ workers part time rather than full time as Medicaid payment rates and consumers with limited incomes cannot afford higher costs. Caregivers will in the end receive less pay.”
Two years after President Obama pledged his “We Can’t Wait” program, the U.S. Department of Labor extend the Fair Labor Standards Act’s (FLSA) announced today the final rule that will provide minimum wage and overtime protections to most of the nation’s workers who provide essential home care assistance to elderly people and people with illness, injuries and disabilities.
Beginning January 1, 2015, nearly two million direct care workers will be covered under the FLSA, leading to a more a stable workforce, industry members and officials say.
“Today we are taking an important step toward guaranteeing that these professionals receive the wage protections they deserve while protecting the right of individuals to live at home,” said Secretary of Labor Thomas E. Perez.
The final rule also clarifies that direct care workers who perform medically-related services for which training is typically a prerequisite are not companionship workers and therefore are entitled to minimum wage and overtime protections.
“Direct care workers play a critical role in ensuring access to high-quality home care that many people need in order to remain healthy and independent in their communities, and they should be compensated fairly for this important work,” said Secretary of Health and Human Services Kathleen Sebelius. “We will continue to engage with consumers, states, advocates and home care providers in the implementation of this rule to help people with disabilities, older adults and their families receive quality, person-centered services.”
There are an estimated 1.9 million direct care workers in the U.S., with nearly all currently employed by home care agencies, according to the Department of Labor. Of these care providers, approximately 90% are female, and nearly 50% are minorities.
As the home care workforce constitutes the fastest-growing job force in the nation—projected to increase 70% over the course of this current decade—America will need an estimated 4 million home care aides to meet the support needs of its aging population, according to the Paraprofessional Healthcare Institute (PHI).
“This is a tremendous victory for home care aides, a workforce earning near-poverty wages while providing vital personal care and health-realted services to America’s elders and people living with disabilities,” said the Paraprofessional Healthcare Institute (PHI) in a statement. “We are pleased that the Obama administration has fulfilled its promise to treat home care workers with respect and fairness.”
Written by Jason Oliva
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I don't have medicare. I can't afford private pay. I live alone. No family. I guess I'll die alone now. I'm glad they are going to get more money though. I'm in a rural part of the country, like a lot of people. The U.S. isn't all big cities and big corporations providing care. It's a lot of small towns and local communities that struggle to help their elderly residents. Some rules don't help, not really. They just make legislators feel good when they perpetuate the idea of corporations somehow making money from poor people. It's an idea that gets votes but it doesn't really help anyone, least of all old people.
It is about time homecare workers get at least minimum wage.
I agree care givers should be paid minimum wage or better depending upon their skill set and training. However it is time and a half that will hurt those it was intended to help. Live in Care Givers now receive room and board as part of their pay, time and a half will make this service very expensive. The industry will naturally switch to 24 hour care, charging more because they will now be forced to break up the live in care cases that offer discounted rates. Companies will incur the expenses of hiring, training, and scheduling 3, 8 hour shifts instead of one live in. Unfortunately many hard working care givers will have their hours cut and will be forced to work several part time jobs when they once could work for only one company. This will create havoc and drive up costs for those who can hardly afford these services, of course the wealthy will not even notice it, so who wins?
it seems a little sad to me that the people that are actually doing all the hard work and in a lot of cases making the biggest sacrifices are the ones that are being mistreated the most . what does it say about American culture
i am a care giver i take care of my son who has a spinal cord injury leaving him with no movement from the neck down. i gave up life as i knew it to meet his needs on a daily basis as well as my husband. we do his cares 24/7 and have a aide come in a few hours a week so one of us can get a brake, a nap or outing what ever we choose. we only get so many hours to split between all the aides and we get no over time no vacation no sick time we get nothing. we are allowed to work 45 hours a week. but straight time. and grateful for that. if a aide calls in or wants time off we can pick up the hours i guess..my son requires 24 hour care not the allotted we are given each day. those hours we do with no regret. even if our gov. says awww he only need 8 hours a day. who and how is he going to get cathed fed moved in the bed who is going to be there if he chokes or if he gets sick or any thing could happen to a quad. we are not getting rich of the system in fact we go with out in order to make our pay check stretch. we get no heath insurance so we pray we don't get sick , as we know we still have a responsibility to our son. we have medical bill for urgent care and doctor visits, as we get no health insurance, we pay for our own flu shot. and medications.. so to me. the heck with the pay. i would like benefits i don't want to pay top dollar for antibiotics because i have no insurance, i want a vacation even if its for a couple days. and i would love some sick time.. i work hard my days are long my nights are short. my pocket book is tight. every other job gets benefits why not a caregiver who is saving the tax payer millions taking care of loved ones.