The Labor Department extended minimum-wage and overtime pay to nearly two million workers in the home health-care industry, in a long-fought victory for unions, but a move some business officials said could make home care unaffordable for many consumers.
The workers—often known as personal-care aides, home-health aides or certified nursing assistants—typically bathe, dress and feed elderly or disabled patients. A large percentage of the workers are hired directly by people with disabilities or their families. Others are employed by private companies that provide services. Workers typically are paid with Medicaid funds administered by states.
The Labor Department's new rule will take effect on Jan. 1, 2015. Many home-health workers already are paid more than the federal minimum wage—currently $7.25 an hour—but don't get paid time-and-a-half when they work more than 40 hours a week. Many have no health-care coverage themselves, the Labor Department said.
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The new rule revises the definition of "companionship services" to extend minimum-wage and overtime protections to nearly two million more workers.
The U.S. Chamber of Commerce Tuesday reiterated long-standing concerns that the rule could make home-health care unaffordable for many.
"Businesses will have trouble because customers won't be able to afford" the care, said Marc Freedman, the trade group's executive director of labor law policy, who counts some home-health care companies as members. Mr. Freedman said he is particularly concerned about small businesses.
"In the end, the people who'll be likely to suffer will be workers who can't get work they had before," Mr. Freedman said, adding that the rule raises broader concerns that Mr. Perez "is determined to move forward on regulations that the business community has been concerned about for some time."Read the Full Story HERE.
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6 comments:
The Labor Department just made it extremely difficult for those trying to keep there elderly and disabled family members cared for at home.
The out of pocket expenses will now skyrocket for those without the proper insurance or no insurance....It will make it almost impossible to be cared for at home.
Institutionalizing these people rather than being cared for at home may become their only option.....Maybe this is the idea after all?
Yes right The workers commonly known as personal-care assistants, home-health assistants or licensed nursing assistants-- usually bathe, dress as well as feed elderly or handicapped individuals. A large percent of the employees are hired directly by people with disabilities or their family members.
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