New Rules Set To Begin Next Week Will Provide Minimum Wage, Overtime For Home Health Care Workers
This week, the home health care industry lost an appeal to delay Labor Department measures to change regulations for industry wages. The AP reported that Supreme Court Chief Justice John Roberts on Tuesday “denied an emergency request from three home care industry trade groups that said the rules set to take effect Oct. 13 threaten irreparable harm to businesses that provide in-home care for the elderly and disabled.” The industry had been seeking a delay to the rules, which would provide “overtime and minimum wage protections to nearly 2 million home health care workers,” while the court considered whether or not to hear its appeal of a lower court ruling that found the Labor Department is authorized to alter rules for home worker pay. Previously, federal law meant such workers who were hired through staffing agencies were exempt from minimum wage and overtime pay regulations.
What Happens Next
Modern Healthcare reported that although the industry lost its appeal, meaning the lower court decision will be effective beginning Oct. 13, the Department of Labor “has said that it would not start enforcing the rule until 30 days later.” Additionally, the Labor Department “said it would exercise discretion in deciding whether to bring enforcement actions until the end of the year” and “will take into consideration good faith efforts to comply with the law,” enabling the industry to have additional time to comply with the changes.
What This Means For Small Businesses
Modern Healthcare reported that in comments on Tuesday’s ruling, National Association for Home Care and Hospice co-counsel William Dombi said, “We are disappointed that the Chief Justice denied the stay request. It can be expected that the new rules will lead to problems for home care consumers, workers and government programs such as Medicaid.” Small businesses in particular will suffer as they adjust to the labor cost increases associated with these burdensome regulations.
Additional Reading
NFIB previously reported on increases to home health care workers’ wages.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
