"The Labor Department has proposed rescinding an Obama-era rule that extended coverage of the Fair Labor Standards Act to home care workers. The 2013 rule granted them labor protections most other workers have had since 1938. Those include the right to earn at least the federal minimum wage of $7.25 an hour and overtime, paid at one-and-a-half times their regular rate when they work more than 40 hours a week."
"The Trump administration says the rule has not produced the intended benefits and instead created problems, harming employers, workers and the families they serve. Labor advocates counter that taking away wage protections will drive even more workers out of an industry which already sees annual turnover of about 80%. Industry group says the rule brought unintended consequences"
"After it took effect in late 2015, the industry group says, workers saw their earnings drop. Rather than pay overtime, home care agencies capped workers at 40 hours a week to keep costs down for families who pay for care on their own and states that cover home care through Medicaid. Consequently, caregivers who had been working 60 to 70 hours a week for a single family took on other jobs with other agencies to make up for lost income, disrupting long-term relationships with families."
Caring for the elderly in America is costly and unaffordable for many. The Labor Department has proposed rescinding the 2013 rule that extended Fair Labor Standards Act protections to home-care workers, including federal minimum wage and overtime pay. The administration contends the rule failed to deliver intended benefits and created problems for employers, workers and families. Labor advocates warn that removing wage protections will worsen already high annual turnover near 80 percent. Industry representatives say the rule caused unintended consequences: agencies capped workers at 40 hours to control costs, workers lost earnings and took additional jobs, and agencies faced higher recruiting and hiring burdens.
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