Fair Pay for 2.5
Million Home Care Aides Facing Industry Opposition
by Jodi Sturgeon and Ai-Jen Poo,
New America Media
February 16, 2012
President Barack
Obama proposed new fair-employment protections for home care workers in
December. Shown behind Obama in the pink turtleneck is Filipina
immigrant Thelma Reza, who called the speech “historic.” Public input
on the rule change ends in mid-March. (White House Photo by Pete Souza)
NEW YORK--Every
day, Thelma Reza goes to the home of an elderly couple in Los Angeles
to care for them. As a home care worker, Thelma provides her clients
with critical assistance for daily activities many of us take for
granted, such as bathing, dressing, using the toilet and getting around
their home.
Thelma, an immigrant from the Philippines, often works long
hours, sometimes staying with her clients around the clock.
For her difficult, stressful, and often dangerous labor,
Thelma earns just $35 a day. Because Thelma is a home care worker, she
is excluded from the federal law that guarantees most other workers the
right to earn a minimum wage and receive time-and-a-half pay for
overtime.
Obama Proposes
Changes
Recently, however, President Obama and the U.S. Department of
Labor (DOL) took a step that may finally ensure a fair wage for Reza
and the 2.5 million home care and personal assistance workers who
support elders and people with disabilities.
At a White House press conference in December, Obama
announced a plan to amend the federal labor law that currently excludes
home care workers from minimum-wage and overtime protections.
DOL is soliciting public comments on the proposed plan
through mid-March, and the home health industry has wasted no time in
filing arguments that the change would burden home care companies.
The industry recommends instead that Congress alter the rules
and also increase provider payment levels from Medicaid or other
third-party payers. Otherwise, they say, provides will be compelled to
“reduce the availability of care to the elderly and infirm.”
But the DOL projects that the cost of compliance with the
proposed rule change would be a negligible fraction of the industry’s
$84 billion revenue – just one-tenth of 1 percent of the cost.
DOL will issue the final revised regulation after the comment
period closes and full consideration of public input is considered. We
believe that home care workers should wait no longer for fair and safe
working conditions.
If implemented, the president’s proposed regulation would
have a huge effect on the field of home care--one of the
fastest-growing service industries in the country. Total revenue was
estimated to be more than $84 billion in 2009, up from roughly $40
billion in 2001, according to data from the U.S. Census Bureau.
That home care has continued to grow at such a robust pace,
even during the economic downturn, is proof that demand for home help
is greater than ever before. As the boomer generation enters retirement
age--about 10,000 boomers will turn 65 every day for most of the next
two decades--and as their elderly parents continue living longer--the
demand for home care is not likely to slow any time soon.
Overwhelmingly, the workers supplying that care are women.
Almost 90 percent of the home care workforce is female, according to an
analysis of national occupational data by the Paraprofessional
Healthcare Institute (PHI), a nonprofit organization advocating for
long-term care reform.
Home care workers are also disproportionately nonwhite.
Roughly half are people of color--and approximately a quarter of these
workers are foreign-born.
Poverty Wages
for Crucial Care
These workers are paid poverty-level wages for providing
crucial care to elders and people with disabilities. The average home
care worker earned just $9.40 an hour in 2010, and about half worked
less than 40 hours per week.
With annual wages averaging below 200 percent of the federal
poverty level, more than 40 percent of home care workers are forced to
rely on public benefits, such as food stamps and Medicaid.
In addition, few occupations carry greater risk of on-the-job
injury and illness than home care work. In 2010, one-third of injured
home care workers missed a month or more of work (and wages) because of
their injuries.
The low wages, inadequate hours, and high injury risk
associated with home care work combine to contribute to massive
turnover in the field--between 44 to 65 percent each year, according to
various estimates.
This turnover has a negative effect on elders and people with
disabilities, who find it difficult to cope with a revolving door of
unfamiliar faces entering their homes.
Numerous studies over the years have shown a correlation
between high workforce instability and low quality of care. If home
care jobs don’t improve soon, millions of aging boomers and their very
elderly parents will be unable to find the high quality care necessary
to remain in their own communities during their retirement years.
That is why it is long past time for the largely female and
immigrant home care workforce to be guaranteed at least the most basic
wage protections available to workers under federal law.
Current Rule a
Vestige of the Past
The federal Fair Labor Standards Act (FLSA) was first enacted
in 1938 and assured a minimum wage, extra pay for overtime and other
basic protections for the vast majority of workers in the United
States. But since 1974, when Congress amended FLSA, the “companionship
exemption” has excluded “companions to the elderly and infirm” from
these basic rights.
The 1974 rule is a vestige of an earlier era when a neighbor
or family friend would sit with Grandma or Grandpa, so home care
workers should not be subject to the same labor standards as those in
other fields.
But the companionship exemption provided a potentially
exploitable loophole for home care employers to legally pay their
workers less than minimum wage and less than time-and-a-half for
overtime.
The current rule is simply not fair. America’s home care
workers provide the skills needed to ensure our parents, grandparents,
aunts, uncles, neighbors and friends get proper meals when they can no
longer cook for themselves, don’t fall in the shower and break a hip,
take their medications at the right times, and remain as healthy and
active as possible—at home, not in a nursing institution.
Providing basic labor protections for home care workers is a
sign of respect that what they do is real work. Thelma Reza, who was at
the White House when Obama announced the proposal, called the
president’s announcement “historic.” She declared, “Our work is finally
being recognized.”
Now is the crucial time for public comment. The public can
learn more about this vital issue for home care workers--and home care
recipients—and how to add their voices to the debate by visiting PHI’s
Campaign for Fair Pay.
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