The Associated Press is reporting that a federal appeals
court on Friday ruled in favor of Obama administration regulations that guarantee
overtime and minimum wage protection to nearly 2 million home care
workers.
Nine states, including Georgia, had opposed the rules. Samuel Olens, Attorney General, Office of the Attorney General for
the State of Georgia, had filed a brief arguing that the changes would increase state Medicaid costs and expose states to an unfunded liability.
The ruling was a victory for worker advocacy groups, labor
unions, and the White House. The Labor Department had proposed the regulations after the
Obama White House had been unable to persuade Congress to change the law that exempts home care workers from full coverage under the Fair Labor Standards Act (FLSA).
The Labor Department issued a statement saying “Today's
decision from the U.S. Court of Appeals for the District of Columbia is vital
to nearly two million home care workers, who will now qualify for minimum wage
and overtime protections. The decision confirms this rule is legally sound. And
just as important, the rule is the right thing to do — both for employees,
whose demanding work merits these fundamental wage guarantees, and for
recipients of services, who deserve a stable and professional workforce
allowing them to remain in their homes and communities.”
A unanimous three-judge panel of the U.S. Court of Appeals
for the District of Columbia Circuit reversed a lower court decision in the case and said the Labor Department has the power to
interpret the law to change that exemption.
The AP story cites Judge Sri Srinivasan as saying that a
"dramatic transformation" of the home care industry over the past
four decades as a valid reason for the change. While most caregivers used to be
directly employed by individual households, the vast majority of workers now
work for staffing companies that service hundreds or thousands of customers,
Srinivasan said.
He also noted a massive shift to providing care for the
elderly in their own homes rather than in nursing homes, which requires workers
to offer more advanced medical care and assistance to clients than the mere
"companionship" services envisioned in 1974.
Implementation of the regulations will be delayed, as there is a 45-day window to allow the home care associations to seek a rehearing before the full court.
You can read the full decision here.