In-home care debate: affordability vs. pay

[Omaha Steve]

http://www.omaha.com/article/20120106/NEWS/301069782#in-home-care-debate-affordability-vs-pay

By Erin Golden

Two big players in the in-home care industry — both based in Omaha — say a plan to provide minimum wage and overtime protections for care workers could lead to higher costs for people who use their services.

Executives at Home Instead Senior Care and Right at Home, both franchise companies with locations around the country, said they're paying close attention to the recently released proposal from the U.S. Department of Labor. The changes would remove an exemption that allows employers of many caregivers to pay less than minimum wage and avoid paying more for workers' overtime hours.

Federal officials and labor groups say the move is necessary to update outdated rules meant for caregivers who provided only companionship services. Today, they said, there are nearly 2 million people who work in a rapidly growing industry that provides more comprehensive and professional services, ranging from physical therapy to housekeeping.

And because of the long hours required for in-home work, supporters of the change say many workers don't receive sufficient compensation. An estimated 40 percent of them receive government assistance, including Medicaid and food stamps.

FULL story at link.