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Elder Care News
Supreme Court Says Home Health Care Workers Not
Entitled to Minimum Wage, Overtime Pay
1974 law exempts "companions" for the elderly and
sick
June 12, 2007 - The Supreme Court on Monday in a
9-0 decision ruled that federal minimum wage and overtime laws do not
apply to home care workers, the
AP/Lincoln Journal Star reports (Yost,
AP/Lincoln Journal Star, 5/11).
In the case, Evelyn Coke, a 73-year-old immigrant
from Jamaica, filed a lawsuit against New York-based Long Island Care at
Home to challenge
Department of Labor
regulations that exempt home care workers from the laws. The Supreme
Court agreed to hear the case after the U.S. 2nd Circuit Court of
Appeals overturned the regulations, which the court said conflicted with
congressional intent.
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Congress in 1974 amended the Fair Labor Standards
Act to extend federal minimum wage and overtime laws to household
workers but exempted baby sitters and "companions" for the elderly and
those with illnesses.
In 1975, DOL proposed regulations to implement the
revisions to the law that exempted home care workers. In a brief, Long
Island Care argued that the regulations were consistent with
congressional intent because some lawmakers had raised concerns about
the need to reduce costs.
According to the brief, "The need to restrain costs
in the case of third-party employees has only become more acute as
agencies provide an increasing amount of needed care."
However, attorney Craig Becker, who represents
Coke, argued that the "exemption for baby sitters and companions
Congress had in mind the quintessential neighbor-to-neighbor relations,"
adding, "Increasingly, this is not a casual form of work akin to
baby-sitting but a full-time regular type of employment."
The case applies only to home health care workers
employed by agencies (Kaiser
Daily Health Policy Report, 4/17).
Decision Details
The Supreme Court overturned the appeals court
decision and ruled that Congress must amend the Fair Labor Standards Act
to extend federal minimum wage and overtime laws to home care workers
(Savage,
Los Angeles Times, 6/12).
In the decision, Justice Stephen Breyer wrote that
DOL had the authority to exempt home care workers from federal minimum
wage and overtime laws and that "courts should defer to the department's
rule" (AP/Lincoln
Journal Star, 6/11).
According to the
Los
Angeles Times, the "impact of the ruling will vary by
state" because many states -- including Colorado, Illinois, Kansas,
Michigan, Minnesota, Nevada, Pennsylvania, Washington and Wisconsin --
have separate minimum wage and overtime laws that apply to home care
workers (Los
Angeles Times, 6/12).
Comments
Becker said, "This decision is bad public policy.
There's a growing demand for home care workers." He added, "This
decision will surely only worsen that shortage."
Gerry Hudson -- vice president of the
Service Employees
International Union, which represents an estimated one
million home care workers -- said, "Today's Supreme Court decision is a
serious blow to efforts to ensure quality home care in America and
underscores how unprepared we are to care for the millions of seniors
who will want to live at home instead of institutions" (Johnson,
CongressDaily, 6/12).
Nancy Duff Campbell, co-president of the
National Women's
Law Center, said that the decision is "another blow to
struggling, low-wage women." Under the decision, "profit-making
companies can legally choose to pay home care workers deplorably low
wages or deny them just compensation for overtime," she said (Los
Angeles Times, 6/12).
However, Joe Hafkenschiel, president of the
California
Association for Health Services at Home, said, "This is a
very significant ruling and a very good thing. The exemption from
overtime is in the public's interest because it keeps prices for these
important home care services reasonably priced" (Morrill,
Contra Costa Times, 6/12).
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