Tuesday, June 19, 2007
US Supreme Court Upholds FLSA Companionship Exemption
Eldercare companions, those who attend to the personal needs of infirm adults enabling them to live independently at home, have long been exempted from the Fair Labor Standards Act (FLSA) minimum wage and overtime coverages. The Clinton administration attempted unsuccessfully to narrow this exemption to related caregivers. The exemption was challenged judicially in Long Island Care At Home, Ltd., et al. v. Evelyn Coke. In it's June 11, 2007 ruling, the US Supreme Court upheld the exemption and referred the matter to Congress for a legislative remedy. It is uncertain whether a Congress preoccupied with the Iraq war and immigration reform issues will take this matter up.
As a practical matter, very few unrelated caregivers will provide companionship services at below minimum wage levels, even when room and board are offered as an inducement. The employee turnover rate in companionship care is estimated by the industry to be 40 - 60% annually, largely due to poor wages. Companionship services are often provided by low-skilled women, often immigrants, with few employment options. 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 including companionship services (Los Angeles Times, 6/12/2007).
As a practical matter, very few unrelated caregivers will provide companionship services at below minimum wage levels, even when room and board are offered as an inducement. The employee turnover rate in companionship care is estimated by the industry to be 40 - 60% annually, largely due to poor wages. Companionship services are often provided by low-skilled women, often immigrants, with few employment options. 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 including companionship services (Los Angeles Times, 6/12/2007).
Labels: companionship services, eldercare companions, home workers, long-term care-workers
