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DOL underestimated effects of labor law repeal on seniors, study says

If the proposal passes, 25 percent of seniors may have to find alternative care

A new report from the International Franchise Association looks at the likely effects of the Department of Labor’s (DOL) proposed repeal of the Fair Labor Standards Act’s (FLSA) Companionship Exemption, which would subject in-home caregivers to minimum wage and overtime laws.

The DOL has not admitted that the repeal would force any seniors to resort to institutionalized care, the Washington Times reports. But according to the home care providers surveyed, one in four seniors who currently receive private home care would have to move to an institution. The study also writes that the DOL grossly underestimated the amount of overtime being worked by care providers—it says the actual amount is three times greater than the estimate.

Around 75 percent of the home care providers surveyed said that the additional costs caused by the repeal would go directly to their customers, meaning seniors who can’t afford the price hike would have to find alternative care, most likely in a facility outside their home.

Read the full report here.

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