President Obama came out in support Thursday, 15 December 2011 of a long awaited labor law change, that would entitle nearly 1.8 million home care aides to
overtime pay and a guaranteed minimum wage. The rule is still under review, but if
approved it will remove a 36-year-old exemption for home care aides from
the Fair Labor Standards Act, the law that provides basic wage protections for most American workers.
Most home health aides are already being paid above the minimum wage, but many of them do not receive overtime - a time-and-a-half premium when
they work more than 40 hours a week - thanks to the so-called companionship exemption - see below at federal overtime pay provisions.
In 2007, the Supreme Court ruled against a home care aide named Evelyn
Coke, who argued that her long hours entitled her to overtime pay. The
court upheld the companionship rule, leaving it to either Congress or
the Labor Department to update it. Congress has done little on the
issue, but the Labor Department has moved the rule change forward with
the backing of Sec. Hilda Solis.
According to Solis and the Department of Labor, there are 6 million
seniors who need daily assistance to live outside of nursing homes. That
number is expected to double by 2030.