By far, our most popular post to date is a map we created using federal data on which states offer minimum wage and overtime guarantees to home health workers, and which don't. Right now, under the Fair Labor Standards Act (FLSA), certain classes of workers, ranging from babysitters to home care workers–personal care aides and home health aides–don't have to be paid minimum wage.* So states are left to decide if they want to cover home care workers under their own wage laws. Now, President Obama is pushing the Labor Department to rewrite federal regulations so home care workers could be guaranteed both benefits.
And whether it's politicians, families struggling to pay for in-home care, or the agencies that employ these workers, the rules change has been highly controversial.
In her report "Lack of Protections for Home Care Workers: Overtime Pay and Minimum Wage," researcher Kristin Smith breaks down the differences in pay and hours of home health workers versus hospital and nursing home aides, who do similar work and are "typically" guaranteed minimum wage and overtime. (As a group, home health, personal care, nursing home and hospital aides are called "direct care workers.")
Smith's report is short, but numbers-dense. So with that in mind, here are the seven key takeaways:
Requiring minimum wage will raise the cost of home health care: According to a White House media release, about 89 percent of these workers are employed by staffing agencies. (And the agencies are the businesses targeted by the proposed rule change.) Smith writes that the Labor Department estimates, "the average annualized cost of the rule change will total about $4.7 million per year over ten years." But the costs can be controlled a bit on the overtime front (See #4).
notes that the home health workforce could grow from 1.7 million people to 2.6 million by 2018. That makes it one of the fastest growing employment sectors in the American economy. Already, Smith writes "Home care workers make up more than half of the paid direct care workforce." And that demand is only going to increase as baby boomers age and decide to go the home care route. But the problem is, the field pays artificially low wages, and workers can put in some very long hours. So besides high turnover, the field's got a bad reputation, which makes recruiting replacements tough. Offering minimum wage and overtime could both help reduce turnover and make it easier to replenish this segment of the workforce.
Minimum wage and overtime will help decrease poverty in general and child poverty in particular: As the White House media release noted, 92 percent of these workers are women and many of them are the family breadwinner, "and close to 40 [percent of all these workers] rely on public benefits such as Medicaid and food stamps." In other words, single moms are over-represented in this kind of job. And a number of them are counting on government aid to bridge the gap between what they're paid and the cost of keeping up a family. Smith also found that home health aides had a 20 percent poverty rate, while personal care aides had a 28 percent poverty rate. Meanwhile their occupational peers, hospital and nursing home aides, both have poverty rates around half that, at 12 percent. So while raising all these workers to the federal minimum wage of $7.25 an hour won't stamp-out poverty in this group, it will help.
*For purposes of definition, Smith writes of home care workers, "These aides assist clients in their homes with personal and household duties such as bathing, dressing, shopping, cleaning, and meal preparation, as well as routine healthcare such as changing bandages and dressing wounds. Some also help clients by performing simple medical tasks such as administering medication and checking temperatures. Hospital aides, nursing home aides, and home care aides engage in similar work for their clients, even though they work in different institutional settings."
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