California Debates Higher Minimum Wage for Health Workers

California may become the first state to establish a $25 per hour minimum wage for health care workers under legislation that is advancing in the state Senate. SB 525, introduced in February by state Senator Durazo (D-Los Angeles) would apply to a broad range of low-wage home care workers, potentially including those workers that don’t…

California Debates Higher Minimum Wage for Health Workers

California may become the first state to establish a $25 per hour minimum wage for health care workers under legislation that is advancing in the state Senate.

SB 525, introduced in February by state Senator Durazo (D-Los Angeles) would apply to a broad range of low-wage home care workers, potentially including those workers that don’t participate in direct patient care, such as office workers. The bill is backed by the powerful SEIU-United Healthcare Workers West, who reportedly have dumped nearly $11 million into a series of California minimum wage measures.

The bill is facing opposition from hospital groups and various health-related associations, arguing that a minimum wage of this level would increase costs to unsustainable levels, resulting in businesses closing and less access to care.

On April 12, the Committee on Labor, Public Employment and Retirement heard from the bill’s sponsor as well as numerous community members, both in favor and opposed. Senator Durazo reported that California faced a health care worker shortage of over 500,000 prior to the pandemic, citing a recent report (not identified) that shows 31% of workers saying they are considering leaving the industry for better paying jobs in other fields. Speaking in opposition, an administrator of a large hospital system stated they would see an annual decrease in revenue of $60-$80 million if this measure passes.

Following public comment, state Senator Laird (D-Santa Cruz) mentioned some health care systems that operate on razon-thin margins, depending on where in the state they’re located. He expressed a need for an amendment bill that addresses this.

As there were no additional questions, the Committee called the roll. With three yes votes, the bill remains on call to allow those absent a chance to vote. Stay tuned to future Private Duty Source newsletters for updates.

Florida’s Medicaid Workers Minimum Wage Increases to $15

Effective October 1, 2022, Florida home care providers serving clients in the Medicaid system, either directly or through a Statewide Medicaid Managed Care (SMMC) plan, must pay employees at least $15.00/hour. This mandate is part of Freedom First budget signed by Governor Ron DeSantis early this summer. NAHC’s Executive Director of Private Duty, Kristen Wheeler,…

Dept of Labor Announces Listening Sessions on Revisions to Overtime Regs

  • Seeking input on executive, administrative, professional exemptions

The U.S. Department of Labor announced a series of listening sessions with workers, employers and workplace stakeholders on potential revisions to regulations used to enforce the Fair Labor Standards Act’s minimum wage and overtime exemptions for executive, administrative and professional employees.

The FLSA requires employers to pay most U.S. employees at least the federal minimum wage for all hours worked, and overtime pay at not less than time and one-half the regular rate of pay for hours worked over 40 in a workweek.

The law, however, provides an exemption from minimum wage and overtime pay for workers employed as “bona fide” executive, administrative or professional employees. To be exempt, employees must generally meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week.

“Our goal is to use these sessions to listen, engage workers and hear their perspectives on the possible impact of changes to the regulations,” explained Acting Wage and Hour Division Administrator Jessica Looman. “As we consider the needs of today’s workforce and industry demands, we need public input to ensure that revisions to the overtime regulations fulfill the original intent and promise of the law.”

In fiscal year 2021, the department’s Wage and Hour Division recovered more than $138 million in overtime back wages for more than 145,000 workers. In its FLSA investigations, the division found overtime back wages represented 80 percent of all back wages found due.

The division announced that it will hold a listening session for workers, employee stakeholders and union representatives as follows:

WHO:                         Employees, Employee advocates and union representatives

WHEN:                      Thursday, May 5, 2022 at 6-7 p.m. EDT

WHERE:                    Register for the Southeast Worker Overtime Listening Session Registration

Dept of Labor Announces Listening Sessions on Revisions to Overtime Regs

  • Seeking input on executive, administrative, professional exemptions

The U.S. Department of Labor announced a series of listening sessions with workers, employers and workplace stakeholders on potential revisions to regulations used to enforce the Fair Labor Standards Act’s minimum wage and overtime exemptions for executive, administrative and professional employees.

The FLSA requires employers to pay most U.S. employees at least the federal minimum wage for all hours worked, and overtime pay at not less than time and one-half the regular rate of pay for hours worked over 40 in a workweek.

The law, however, provides an exemption from minimum wage and overtime pay for workers employed as “bona fide” executive, administrative or professional employees. To be exempt, employees must generally meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week.

“Our goal is to use these sessions to listen, engage workers and hear their perspectives on the possible impact of changes to the regulations,” explained Acting Wage and Hour Division Administrator Jessica Looman. “As we consider the needs of today’s workforce and industry demands, we need public input to ensure that revisions to the overtime regulations fulfill the original intent and promise of the law.”

In fiscal year 2021, the department’s Wage and Hour Division recovered more than $138 million in overtime back wages for more than 145,000 workers. In its FLSA investigations, the division found overtime back wages represented 80 percent of all back wages found due.

The division announced that it will hold a listening session for workers, employee stakeholders and union representatives as follows:

WHO:                         Employees, Employee advocates and union representatives

WHEN:                      Thursday, May 5, 2022 at 6-7 p.m. EDT

WHERE:                    Register for the Southeast Worker Overtime Listening Session Registration

Dept of Labor Announces Listening Sessions on Revisions to Overtime Regs

Seeking input on executive, administrative, professional exemptions The U.S. Department of Labor announced a series of listening sessions with workers, employers and workplace stakeholders on potential revisions to regulations used to enforce the Fair Labor Standards Act’s minimum wage and overtime exemptions for executive, administrative and professional employees. The FLSA requires employers to pay most U.S. employees at least the federal…

NAHC to Congress: Minimum Wage Hikes Must Not Outpace Reimbursement Rates

On February 9th, the National Association for Home Care and Hospice sent a letter to leaders in Congress of both parties, outlining recommendations as legislators consider an increase in the minimum wage to $15 per hour. Twenty-eight state home care and hospice associations joined NAHC in signing the letter. An increase to the federal minimum…