June 11, 2007

Home care workers are not entitled to overtime pay under federal law

Home care workers are not entitled to overtime pay under federal law, the Supreme Court ruled Monday, a setback for a growing labor force of more than 1 million people. The Clinton administration had drafted a regulation to cover the workers, but the rule was shelved after President Bush took office in 2001. Home care aides are the key to the independent life senior citizens want, but lack of adequate pay is fueling turnover rates of 40 to 60 percent annually.

Two weeks ago, the court limited workers' ability to sue for pay discrimination, ruling against a Goodyear employee who earned thousands of dollars less than her male counterparts but waited too long to complain. Half of home care workers are minorities, and 90 percent are women, according to 2000 census data. Their wages remain among the lowest in the service industry. Many home care workers were brought under the law's protection starting with Democratic administrations in the 1960s. In 1974, Congress broadened the law to cover workers in a variety of fields. The subsequent Labor Department rule reversed Fair Labor Standards Act coverage for home care workers who previously had the protection.

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