New Law Offers LaVista In-Home Care Workers Minimum Wage, Overtime

Posted on Oct 10, 2013

On Tuesday, September 17th, 2013 the Obama administration announced that they’ve approved a new rule extending federal minimum wage and overtime protections to workers who provide in-home care to people with disabilities.

This historic new legislation would mark the first time such benefits have been extended to in-home care workers by the federal government. The language of the current law, created in 1974, regards such workers more in the category of companions or babysitters—as opposed to caregivers who perform similar duties at assisted living facilities.

Because of the low pay standard, approximately 40% of in-home care workers are currently using public assistance such as Medicaid and food stamps to make ends meet.

Approximately two million in-home care workers are set to benefit from the new rule. These workers will be:

  • Providers of in-home care.
  • Employed by agencies and third parties.
  • Trained to perform medically related services.

They will receive:

  • Federal minimum wage, which is $7.25 per hour.
  • Time and a half overtime when working over 40 hours a week.

Workers who are paid by either the individual they are assisting or their family to provide non-medical services, such as companionship, will not be covered by the new rule.

Though published in the Federal Register in early October 2013, the rule won’t be implemented until January 1st, 2015. This is will give families, local government and other affected parties 14 months—as opposed to the usual 60 days—to make any necessary changes.

Need to know more about Social Security disability? Talk to a LaVista disability benefits attorney at Cuddigan Law today. Call 402-933-5405. Our informative report, Give Yourself the Best Chance of Winning Your Social Security Disability Case, is available to you free.

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