Home care groups file petition to hear overtime case

New U.S. Department of Labor regulations mean almost two million home-care aides, who often work long and unpredictable hours, will be paid time-and-a-half for clocking more than 40 hours a week. But the new ruling may be doing more harm than good for some workers and the clients they set out to help—the changes amount to an unfunded mandate, leaving many small businesses already facing low margins struggling to find a way to pay for it.

The rule ends the so-called “companionship services exemption” for personal care assistants who help elderly and individuals with special needs stay in their homes through subsidized care.

“We believe the rule is the right policy,” a U.S. Department of Labor announcement says. “Both for those employees, whose demanding work merits these fundamental wage guarantees, and for recipients of services, who deserve a stable and professional workforce allowing them to remain in their homes and communities.”

Many providers are already seeing the fallout that some predicted all along—increased costs and confusion among care recipients, along with reduced overtime and overall wages for some home-care workers. Facing finite funding, home care agencies have begun pro-rating their hourly rates in response to their increased labor costs. Hourly wages get adjusted downward to compensate for increased overtime pay, allowing agencies to meet Washington’s new rule while maintaining employees’ total hour and pay.

This week, the IFA, the Home Care Association of America and the National Association for Home Care and Hospice announced that an appeal was filed with the U.S. Supreme Court to review the new regulations. The groups are challenging the new rule, arguing that the administration exceeded its regulatory authority.

“Without increasing spending from government home care programs or imposing higher charges to vulnerable patients, home care aide employers can only restrict working hours and avoid overtime pay,” states the National Association for Home Care and Hospice website.