While advocates for home healthcare workers have found support at the White House, the federal courts appear to be less willing to allow modifications to rules that would result in increased compensation to home healthcare workers. These payments would have largely been in the form of increased wages and increased eligibility for overtime. While these measure have been rendered ineffective by this decision, the attorneys for the affected workers have already stated that they will file an appeal. The Jayson Law Group, LLC is dedicated to informing employers about changes to the law and can help your business or healthcare organization achieve compliance with all applicable labor laws and standards.

What employment laws effect home healthcare workers?

Under the federal Fair Labor Standards Act, many home healthcare workers are exempt from minimum wage and overtime requirements. 29 CFR § 552.109(a). While this exemption was originally created it was intended to cover babysitters and bona fide companions. However, workers who provide companionship and support to the elderly and infirm as a profession are affected by this exemption are typically those that are classified as companions.

This issue first gained national attention in 2007 with the decision in Long Island Care at Home & Osborne v. Coke. In Coke, the court overturned a lower courts’ decision and permitted the status quo to continue in that home healthcare workers –even those employed by a third party contractor – are ineligible for the minimum wage and overtime protections provided by the Fair Labor Standards Act.

Drawing from this 2007 precedent the judge in current matter struck down the extension of the protections to home healthcare workers. The judge wrote, “Undaunted by the Supreme Court’s decision in Coke, and the utter lack of Congressional support to withdraw this exemption, the Department of Labor amazingly decided to try to do administratively what others had failed to achieve in either the Judiciary or the Congress.” In short, the judge showed a great deal of skepticism regarding the path and processes that the Department of Labor had utilized to pass this rule.

In response to the decision, a Department of labor spokesperson claimed, “The Final Rule’s extension of minimum wage and overtime protections to most home care workers is the right policy—both for those 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.”

What other regulations and standards must healthcare businesses comply with?

The foregoing is far from the only regulatory concern that businesses dealing in home healthcare need must comply with. While many other state laws apply, some of the more important regulatory  standards that these businesses must adhere to include:

• Home Health Agency Licensing Standards are set forth in N.J.A.C. 8:42.
• Hospice Licensing Standards are contained within J.A.C. 8:42C.
• General Licensure Procedures And Enforcement of Licensure Regulations are set forth in N.J.A.C. 8:43E.
• Standards for Licensure of Adult and Pediatric Day Health Services are laid out in N.J.A.C. 8:43F.
• Standards For Licensure of Residential Health Care Facilities are contained in the statute N.J.A.C. 8:43
• Long-term care rules for Adult and Pediatric Day Health Services are discussed within N.J.A.C. 8:86.

While the foregoing is merely a survey of some statutes applicable to home healthcare companies operating in New Jersey, the list is far from exhaustive. Furthermore numerous federal regulations can also apply.

What impact could Congressional action have on the home healthcare industry?

Due to the cost of living in the northeast and already existing state regulations, all home healthcare companies already pay at least the federal minimum wage in New Jersey. This is generally less accurate when it comes to the payment of overtime hours, however. While protections for overtime wages for healthcare workers do exist in New Jersey, a worker can become exempt by becoming salaried employee or through other means.

Therefore, though perhaps less so in New Jersey than in other states, these regulations are almost assuredly going to cost employers money — through increased labor cost or increased employment litigation. Though it is an admirable goal to put more money in workers’ pockets, it is essential that all factors are fully considered prior to its implementation. Thus, as is the case when any business cost increases, any Congressional action that increases labor costs is likely to increase the costs for consumers and government programs like Medicare.

Rely on our experience in employment law concerns

At the Jayson Law Group our attorneys are dedicated advisers and advocates for your business interests and goals. We can provide trusted advice for all of your legal questions. To schedule your free and confidential initial consultation, call (908) 258-0621 or contact us online today.