{"id":6180,"date":"2012-02-16T12:51:35","date_gmt":"2012-02-16T17:51:35","guid":{"rendered":"http:\/\/stateimpact.npr.org\/new-hampshire\/?p=6180"},"modified":"2012-03-14T16:55:13","modified_gmt":"2012-03-14T20:55:13","slug":"seven-takeaways-from-the-carsey-institutes-report-on-raising-wages-for-home-care-workers","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/new-hampshire\/2012\/02\/16\/seven-takeaways-from-the-carsey-institutes-report-on-raising-wages-for-home-care-workers\/","title":{"rendered":"Seven Takeaways From The Carsey Institute&#8217;s Report On Raising Wages For Home Care Workers"},"content":{"rendered":"<div id=\"attachment_6264\"  class=\"wp-caption module image left\" style=\"max-width: 300px;\"><a class=\"fancybox\" title=\"President Obama is pushing for a Labor Department rules change that would require home care agencies to pay aides minimum wage and overtime.\" href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/138949802.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-6264\" title=\"President Obama Urges Congress To Act To Extend The Payroll Tax Cut And Unemployment Insurance\" src=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/138949802-300x258.jpg\" alt=\"\" width=\"300\" height=\"258\" srcset=\"https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/138949802-300x258.jpg 300w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/138949802-620x533.jpg 620w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/138949802-220x189.jpg 220w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><p class=\"wp-media-credit\">Alex Wong \/ Getty Images<\/p><p class=\"wp-caption-text\">President Obama is pushing for a Labor Department rules change that would require home care agencies to pay aides minimum wage and overtime.<\/p><\/div>\n<p>By far, our most popular post to date is <a title=\"The States With The Best And Worst Wage Laws For Home Health Workers\" href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/maps\/home-health-pay-and-overtime-policies-by-state\/\" target=\"_blank\">a map we created<\/a> using federal data on which states offer minimum wage and overtime guarantees to home health workers, and which don&#8217;t.\u00a0 Right now, under the <a title=\"Fair Labor Standards Act\" href=\"http:\/\/www.dol.gov\/whd\/regs\/statutes\/FairLaborStandAct.pdf\" target=\"_blank\">Fair Labor Standards Act<\/a> (FLSA), certain classes of workers, ranging from babysitters to home care workers&#8211;personal care aides and home health aides&#8211;don&#8217;t have to be paid minimum wage.*\u00a0 So states are left to decide if they want to cover home care workers under their own wage laws.<\/p>\n<p>Many are choosing not to.<\/p>\n<p>Now, <a title=\"We Can\u2019t Wait: President Obama Will Announce Administrative Action to Provide Minimum Wage and Overtime Protections for Nearly 2 Million In-Home Care Workers\" href=\"http:\/\/www.whitehouse.gov\/the-press-office\/2011\/12\/15\/we-can-t-wait-president-obama-will-announce-administrative-action-provid\" target=\"_blank\">President Obama is pushing the Labor Department<\/a> to rewrite federal regulations so home care workers could be guaranteed both benefits.<\/p>\n<p>And whether it&#8217;s politicians, families struggling to pay for in-home care, or the agencies that employ these workers, the rules change has been highly controversial.<!--more--><\/p>\n<p>In her report &#8220;<a title=\"Lack of Protections for Home Care Workers Overtime Pay and Minimum Wage\" href=\"http:\/\/www.carseyinstitute.unh.edu\/publications\/IB-Smith-Home-Care-Workers.pdf\" target=\"_blank\">Lack of Protections for Home Care Workers: Overtime Pay and Minimum Wage<\/a>,&#8221;\u00a0 <a title=\"Carsey Institute\" href=\"http:\/\/www.carseyinstitute.unh.edu\/\" target=\"_blank\">Carsey Institute<\/a> researcher Kristin Smith breaks down the differences in pay and hours of home health workers versus hospital and nursing home aides, who do similar work and are &#8220;typically&#8221; guaranteed minimum wage and overtime.\u00a0 (As a group, home health, personal care, nursing home and hospital aides are called &#8220;direct care workers.&#8221;)<\/p>\n<p>Smith&#8217;s report is short, but numbers-dense.\u00a0 So with that in mind, here are the seven key takeaways:<strong><\/strong><\/p>\n<ol>\n<ol>\n<ol>\n<ol>\n<ol>\n<li><strong><strong>Home care workers have lower median wages than comparable workers in hospitals<\/strong><\/strong><strong> and nursing homes: <\/strong>While half of all American workers made more than $16.83 an hour in 2010, the median hourly wage for all direct care workers&#8211;hospital, nursing home, and in-home aides&#8211;dipped sharply, to $10.22.\u00a0 And the wages of home care workers help drag down that figure.\u00a0 The median hourly wage for hospital aides is the best in the direct care category, at $12, followed by nursing home aides at about a dollar less.\u00a0 Meanwhile, the median wage for both types of home care worker is less than $10 an hour.\u00a0 But Smith notes that &#8220;median wages mask the fact that some workers are paid lower than the minimum wage.&#8221;\u00a0 That&#8217;s because half of the people counted make more than that amount&#8230;and half make <em>less<\/em>.\u00a0 So it&#8217;s instructive to look at the &#8220;lowest quartile&#8221; for wages.\u00a0 When Smith looked at the range of pay for the lowest-paid segment of each population, she found that direct care workers in the lowest quartile just skirted the edge of the <a title=\"Wages And Hours Worked: Minimum Wage\" href=\"http:\/\/www.dol.gov\/compliance\/topics\/wages-minimum-wage.htm\" target=\"_blank\">$7.25 federal minimum wage<\/a>, at $7.63.\u00a0 Once again, hospital and nursing home aides were above that range.\u00a0 But the lowest quartile among home health aides made less than $7.21 an hour, while one-in-four personal care aides made less than $6.59 an hour.<strong><iframe loading=\"lazy\" src=\"https:\/\/docs.google.com\/spreadsheet\/pub?key=0Atb_8tUjelW6dG83SnYxd3YtbGh5YktTVVdzbUJhSHc&amp;single=true&amp;gid=3&amp;output=html&amp;widget=true\" frameborder=\"0\" width=\"600\" height=\"400\"><\/iframe><br \/>\n<\/strong><\/li>\n<li>\n<div id=\"attachment_6276\"  class=\"wp-caption module image right\" style=\"max-width: 230px;\"><a class=\"fancybox\" title=\"Guaranteeing minimum wage for home care workers will increase health care costs\" href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4689157016_1414d718e2.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-6276\" title=\"Stretching The Dollar\" src=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4689157016_1414d718e2-300x390.jpg\" alt=\"\" width=\"230\" height=\"300\" srcset=\"https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4689157016_1414d718e2-300x390.jpg 300w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4689157016_1414d718e2-220x286.jpg 220w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/4689157016_1414d718e2.jpg 384w\" sizes=\"(max-width: 230px) 100vw, 230px\" \/><\/a><p class=\"wp-media-credit\">Truthout.org \/ Flickr<\/p><p class=\"wp-caption-text\">Guaranteeing minimum wage for home care workers will increase health care costs<\/p><\/div>\n<p><strong>Requiring minimum wage will raise the cost of home health care: <\/strong>According to a <a title=\"We Can\u2019t Wait: President Obama Will Announce Administrative Action to Provide Minimum Wage and Overtime Protections for Nearly 2 Million In-Home Care Workers\" href=\"http:\/\/www.whitehouse.gov\/the-press-office\/2011\/12\/15\/we-can-t-wait-president-obama-will-announce-administrative-action-provid\" target=\"_blank\">White House media release<\/a>, about 89 percent of these workers are employed by staffing agencies.\u00a0 (And the agencies are the businesses targeted by the proposed rule change.)\u00a0 Smith writes that the Labor Department estimates, &#8220;the average annualized cost of the rule change will total about $4.7 million per year over ten years.&#8221;\u00a0 But the costs can be controlled a bit on the overtime front (See #4).<strong><\/strong><\/li>\n<li><strong>A greater portion of personal care aides are forced into working part-time than their peers: <\/strong>Since the economy tanked, the popular term for people who work fewer hours than they&#8217;d like is &#8220;underemployed.&#8221;\u00a0 That&#8217;s one of the key reasons Smith noted workers could be &#8220;involuntarily&#8221; part-time in 2010.\u00a0 She found that about one out of four American workers would work full-time if they could.\u00a0 The overall direct care worker category and the home health aide numbers were very close to this mark.\u00a0 For personal care aides, however, that number shot up to 37 percent.\u00a0 Meanwhile, the demand for more hours among hospital and nursing home aides was much lower.<iframe loading=\"lazy\" src=\"https:\/\/docs.google.com\/spreadsheet\/pub?key=0Atb_8tUjelW6dG83SnYxd3YtbGh5YktTVVdzbUJhSHc&amp;single=true&amp;gid=1&amp;output=html&amp;widget=true\" frameborder=\"0\" width=\"600\" height=\"400\"><\/iframe><\/li>\n<li><strong>It might not be as expensive to pay home care aides overtime as one might think: <\/strong>This is where those high &#8220;involuntarily part-time&#8221; figures above come in.\u00a0 Clearly, there&#8217;s a demand among home care workers for more hours.\u00a0 And Smith notes that since these workers don&#8217;t get paid overtime, agencies can give into the temptation to simply have the same employee work a long shift.\u00a0 The easy way to keep overtime costs down, Smith says, is to cut down the hours of aides who are working overtime now, and give those hours to the employees who want more work.\u00a0 And, she writes, some states already guarantee overtime to this class of worker, and can provide some helpful experience.\u00a0 &#8220;For example, in New York City, <a title=\"Cooperative Home Care Associates\" href=\"http:\/\/www.chcany.org\/\" target=\"_blank\">Cooperative Home Care Associates<\/a>,&#8211;an agency that pays workers a premium overtime rate&#8211;limited overtime to less than 10 percent of all hours through the use of a tracking system.&#8221;<strong><br \/>\n<\/strong><\/li>\n<li><strong>Minimum wage and overtime will help &#8220;stabilize&#8221; a rapidly growing and high-demand segment of the workforce: <\/strong>Citing projections from the <a title=\"US Bureau Of Labor Statistics\" href=\"http:\/\/www.bls.gov\/\" target=\"_blank\">Bureau of Labor Statistics<\/a>, Smith\n<div id=\"attachment_6267\"  class=\"wp-caption module image left\" style=\"max-width: 300px;\"><a class=\"fancybox\" title=\"Home care aides often make substantially less than their peers in hospitals and nursing homes\" href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/95609154.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-6267\" title=\"Subsidized Long-Term Care Supporters See Opportunity With Health Care Bill\" src=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/95609154-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" srcset=\"https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/95609154-300x200.jpg 300w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/95609154-620x413.jpg 620w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/95609154-220x146.jpg 220w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><p class=\"wp-media-credit\">Joe Raedle \/ Getty Images<\/p><p class=\"wp-caption-text\">Home care aides often make substantially less than their peers in hospitals and nursing homes<\/p><\/div>\n<p>notes that the home health workforce could grow from 1.7 million people to 2.6 million by 2018.\u00a0 That makes it one of the fastest growing employment sectors in the American economy.\u00a0 Already, Smith writes &#8220;Home care workers make up more than half of the paid direct care workforce.&#8221;\u00a0 And that demand is only going to increase as baby boomers age and decide to go the home care route.\u00a0 But the problem is, the field pays artificially low wages, and workers can put in some very long hours.\u00a0 So besides high turnover, the field&#8217;s got a bad reputation, which makes recruiting replacements tough.\u00a0 Offering minimum wage and overtime could both help reduce turnover and make it easier to replenish this segment of the workforce.<\/li>\n<li>\n<div id=\"attachment_6281\"  class=\"wp-caption module image right\" style=\"max-width: 292px;\"><a class=\"fancybox\" title=\"Smith says raising wages and instituting overtime would increase the quality of care over the long haul.\" href=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/2565838707_598f62991e.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-6281\" title=\"Comments and faves Want to format your comment?  By takomabibelot No real name given + Add Contact  This photo was taken on June 8, 2008 in Silver Spring, Maryland, US, using an Olympus E-500. 472 views This photo belongs to      takomabibelot's photostream (3,299)         Late Afternoon Panorama of Christ Church Steeple &amp; the Ben Franklin (Philadelphia, PA)         Caduceus (Silver Spring, MD)         Caduceus (Silver Spring, MD)         Works of Dennison Manufacturing Co., Framingham, Mass. (1898)         Silver Spring International Middle School Mural Detail: Peace Signs, Star, Jaguar (Silver Spring, MD)  This photo also appears in      Caduceus (Set)     Silver Spring (MD) (Set)     Murals and Mosaics (Group)     Montgomery County, MD (Group)     Referentes cl\u00e1sicos (Group)     Silver Spring... (Group)  Tags      Caduceus     geotagged     Montgomery Blair High School     Mosaic     Silver Spring International Middle School     Wayne Avenue     Crescens Scientia     Snake     Staff     Kerykeion     Wings   Show machine tags (2) License      Attribution Some rights reserved  Privacy      This photo is visible to everyone\" src=\"http:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/2565838707_598f62991e.jpg\" alt=\"\" width=\"292\" height=\"500\" srcset=\"https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/2565838707_598f62991e.jpg 292w, https:\/\/stateimpact.npr.org\/new-hampshire\/files\/2012\/02\/2565838707_598f62991e-220x376.jpg 220w\" sizes=\"(max-width: 292px) 100vw, 292px\" \/><\/a><p class=\"wp-media-credit\">takomabibelot \/ Flickr<\/p><p class=\"wp-caption-text\">Smith says raising wages and instituting overtime would increase the quality of care over the long haul.<\/p><\/div>\n<p><strong>Minimum wage and overtime will help decrease poverty in general and child poverty in particular:\u00a0 <\/strong>As the White House media release noted, 92 percent of these workers are women and many of them are the family breadwinner, &#8220;and close to 40 [percent of all these workers] rely on public benefits such as Medicaid and food stamps.&#8221;\u00a0 In other words, single moms are over-represented in this kind of job.\u00a0 And a number of them are counting on government aid to bridge the gap between what they&#8217;re paid and the cost of keeping up a family.\u00a0 Smith also found that home health aides had a 20 percent poverty rate, while personal care aides had a 28 percent poverty rate.\u00a0 Meanwhile their occupational peers, hospital and nursing home aides, both have poverty rates around half that, at 12 percent.\u00a0 So while raising all these workers to the federal minimum wage of $7.25 an hour won&#8217;t stamp-out poverty in this group, it will help.<strong><\/strong><\/li>\n<li><strong>Paying at least minimum wage will increase the quality of care:\u00a0 <\/strong>This point is related to stabilizing the home care workforce.\u00a0 Toward the end of her report, Smith writes, &#8220;The data in this brief suggest that narrowing the companionship exemption would benefit workers by raising their wages, improving the equality of care for clients, and reducing turnover.&#8221;\u00a0 Smith previously noted that by paying these workers more, turnover will decrease, and the recruitment pool will increase.\u00a0 So how does this tie to better care?\u00a0 Experienced people who enjoy the work will be more likely to stick with the field, and home care agencies will have an easier time drawing qualified people who want to do the work.\u00a0 In other words, people who might be interested in home health care if it at least paid minimum wage and overtime would be more likely to apply.<strong><br \/>\n<\/strong><\/li>\n<\/ol>\n<\/ol>\n<\/ol>\n<\/ol>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><em>\u00a0*For purposes of definition, Smith writes of home care workers, &#8220;These aides assist clients in their homes with personal and household duties such as bathing, dressing, shopping, cleaning, and meal preparation, as well as routine healthcare such as changing bandages and dressing wounds.\u00a0 Some also help clients by performing simple medical tasks such as administering medication and checking temperatures.\u00a0 Hospital aides, nursing home aides, and home care aides engage in similar work for their clients, even though they work in different institutional settings.&#8221;<br \/>\n<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By far, our most popular post to date is a map we created using federal data on which states offer minimum wage and overtime guarantees to home health workers, and which don&#8217;t.\u00a0 Right now, under the Fair Labor Standards Act (FLSA), certain classes of workers, ranging from babysitters to home care workers&#8211;personal care aides and [&hellip;]<\/p>\n","protected":false},"author":28,"featured_media":6276,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[54],"tags":[28,556,262,513],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/6180"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/users\/28"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/comments?post=6180"}],"version-history":[{"count":95,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/6180\/revisions"}],"predecessor-version":[{"id":7029,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/posts\/6180\/revisions\/7029"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/media\/6276"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/media?parent=6180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/categories?post=6180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/new-hampshire\/wp-json\/wp\/v2\/tags?post=6180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}