Workplace Fairness

Menu

Skip to main content

  • print
  • decrease text sizeincrease text size
    text

Does the Fair Labor Standards Act Hate Home Care Workers?

Share this post

Image: Richard NegriFor the last few months I’ve been thinking about and writing about home care workers. In my work, I find that if folks haven’t had to hire a homecare worker for themselves or their family, it appears that most of these workers fall off the radar.

The problem here is somewhat circular. The demand for homecare services is exploding as the baby boomer generation ages and more seniors and people with disabilities choose to live at home rather than in a nursing home. Low wages, no federal minimum wage or overtime protections, and no benefits contribute to homecare workers leaving their profession (turnover is estimated to be as high as 60% per year). Consumers and patients have difficulty finding and keeping homecare services as a result. Which leads to – yes – increasing demand for homecare workers.

How did this happen?

scales-250.jpgWell, it goes all the way back to 1938 when the Fair Labor Standards Act (FLSA) was enacted to ensure a minimum standard of living for workers through the provision of minimum wage, overtime pay, and other protections – but domestic workers, for some reason, were excluded.

Then 36 years later, in 1974, the FLSA was amended to include domestic employees, such as housekeepers, full-time nannies, chauffeurs, and cleaners. However, people who were described as “companions to the elderly or infirm” were for some reason excluded from the law. They were compared to “babysitters.” Weird, huh?

The following year, in 1975, the Department of Labor (DOL) goes on to interpret this “companionship exemption” as including all direct-care workers in the home, even homecare workers employed by third parties, such as home care agencies.

So, in 2001, the Clinton DOL finds that “significant changes in the home care industry” have occurred and issues a “notice of proposed rulemaking” that would have made important changes to this weird exemption. They agreed that it made no sense to exclude this whole industry, as if they were just like “babysitters.”

Clinton’s findings were unfortunately short-lived because the incoming Bush Administration terminated the revision process. Thank you, Mr. Bush.

In 2007 something else happened worth noting: The US Supreme Court, in a case brought by New York home care attendant Evelyn Coke, upheld the DOL’s authority to define this exception to the FLSA. This means, this crazy archaic law can easily be reversed by the DOL.

Meanwhile more than 1.5 million homecare workers are currently living at near poverty level earning a median income of $17,000 a year. Most of these workers, who both love their work and are good at their work, must have two and three jobs to just make ends meet. Many of these workers need food stamps to put food on their tables. All this ultimately comes back to the consumer who often finds it difficult to find and retain high quality homecare services.

The injustice here is, as was said in a June 6 NY Times Op-Ed, ” …while nannies and caregivers make it possible for professional couples to balance the demands of family and work, they often cannot take time to be with their own families when sickness or injury strikes.”

Though I inherently know that we can fix this problem together, I am keen to know what you think is the best way to make this happen.

This article originally appeared on the SEIU Blog.

About the Author: Richard Negri is the founder of UnionReview.com and is the Online Manager for the International Brotherhood of Teamsters.


Share this post

Capturing Wages for Off-The-Clock Work in California Retail Stores

Share this post

W-F-BlogDuring the past several years, we have represented employees of several clothing retailers, including sales associates working for Polo Ralph Lauren, Gap and Banana Republic, and Chico’s in California-wide class action cases. All of these cases were prosecuted under California labor law. Our most recent employment class action against Polo Ralph Lauren challenged its failure to pay employees for the time they spent waiting for and undergoing “bag checks” or internal theft prevention inspections at the end of their shifts. Our clients alleged they sometimes had to wait for up to a half an hour for managers to perform bag checks and let them leave the stores. They alleged that under California law this off-the-clock time was “work” and that they were entitled to wages for the time they spent in their stores between “clock out and walk out.”

Bag Checks Are Common In the Retail Setting

In the retail store environment, many companies require employees to undergo bag check inspections before they can leave their stores for breaks or at the end of their shifts. According to industry experts, bag checks are a loss prevention tool used by retailers to discourage internal theft. These bag checks are permitted under California law and are generally a mandatory condition of employment for certain types of retail workers. The problem arises when employees are required to wait for their managers or other authorized personnel to perform bag checks on them after they have clocked out and are no longer being paid for their time. Is this waiting time compensable under California, however?

Under California Law, an Employer’s Control Over the Worker Is Key

With certain limited exceptions, hourly employees in California are entitled to be paid for all the time they are “subject to the control of an employer.” Bono Enterprises, Inc. v. Bradshaw (1995) 32 Cal. App. 4th 968. This “includes all the time the employee is suffered or permitted to work, whether or not required to do so.” Industrial Welfare Commission Order 7-2001. In the Polo case, our clients alleged they had been locked inside their stores after they had clocked out at the end of their shifts. From our clients’ perspective, physical confinement plainly satisfied the “control” requirement under California law.

The Federal De Minimis Defense

Polo defended the claims by relying on a federal legal doctrine called the de minimis defense. The de minimis defense arose out of the Portal-to-Portal Act (a 1947 amendment to the federal Fair Labor Standards Act). 29 U.S.C. § 254(a), a provision of the Fair Labor Standards Act, provides that certain activities performed before (preliminary) or after (postliminary) the worker’s principal activities are not compensable.

Under the Fair Labor Standards Act, principle activities include any work of consequence performed for an employer, no matter when the work is performed. If the activity is necessary to the business and is performed by the employees for the primary benefit of the employer, it is generally compensable time, unless it is deemed to be de minimis. It is de minimis when the unpaid time is short, occurs infrequently and is difficult for the employer to track. Lindow v. United States, 738 F. 2d 1057 (9th Cir. 1984)

As the United States Supreme Court explained more than 60 years ago,

When the matter in issue concerns only a few seconds or minutes of work beyond the scheduled working hours, such trifles may be disregarded. Split-second absurdities are not justified by the actualities of working conditions or by the policy of the Fair Labor Standards Act. It is only when an employee is required to give up a substantial measure of his time and effort that compensable working time is involved.

Federal Courts, including the Ninth Circuit, have developed a three-part test to evaluate when unpaid work time can be described as de minimis. In Lindow v. United States, (9th Cir. 1984), the Ninth Circuit Court of Appeals explained that to excuse an employer from its wage obligations under the de minimis defense, the courts must evaluate: “(1) the practical administrative difficulty of recording the additional time; (2) the aggregate amount of compensable time; and (3) the regularity of the additional work.”

Thus, if the work time is short, occurs only on rare occasion and is very hard to track, under federal law the employer can essentially ignore it.

But, Does the De Minimis Defense Apply Under California Law?

One of the central legal issues in the Polo case was whether the federal de minimis exception applied to wage and hour claims under California law. We argued that applying the de minimis defense to our clients’ off-the-clock claims would undermine California’s “subject to the control” test. In other words, if employees under California law are entitled to be paid for all time they are under the employer’s control, it does not matter whether the time is preliminary, postliminary or de minimis. The only thing that matters is whether the worker is under the employer’s control. If control is present, then the worker is entitled to be paid for the time they are under that control.

While the de minimis defense has not been tested by any California appellate court, one thing is clear: “The federal authorities are of little if any assistance in construing state regulations which provide greater protection to workers.” Bono Enterprises, Inc. v. Bradshaw, 32 Cal. App. 4th 968 (1995). This distinction is of great benefit to California workers and is one reason most wage and hour cases in California are prosecuted under California, and not federal, law.

So, does the de minimis defense apply to wage and hour claims under more employee-friendly California law? We still do not know. Just days before the trial court in the Polo class action was scheduled to decide whether to apply the federal de minimis defense to our clients’ claims, the case settled for $4 million.

Eventually, of course, a California appellate court will be asked to decide whether the de minimis defense applies to California off-the-clock claims. For now, California law remains unclear. What if the de minimis defense is deemed to apply to California claims? If workers can establish that the off-the-clock work occurred regularly, amounted to substantial time during the course of employment and that it would have been feasible for the employer to track the time, the de minimis defense should not have a substantial impact on their right to be paid wages for all the time they are subject to their employer’s control.

About the Author: Patrick Kitchin is a labor rights attorney with offices in San Francisco and Alameda, California. He has represented thousands of employees in both individual and class action cases involving violations of California and federal labor laws since founding his firm in 1999. According to retail experts and the media, his wage and hour class actions against Polo Ralph Lauren, Gap, Banana Republic, and Chico’s led to substantial changes in the retail industry’s labor practices in California. Patrick is a 1992 graduate of The University of Michigan Law School and is personally and professionally committed to the protection of workers’ rights everywhere.


Share this post

NY’s Domestic Worker Bill of Rights

Share this post

Workers Comp Insider LogoIn the 1930s, when the Fair Labor Standards Act (FLSA) and the National Labor Relations Act (NLRA) passed, these two laws offered labor protections to workers nationwide – with the exception of two large segments of the work population: domestic workers and agricultural workers. These groups were excluded in the interests of political expediency since a large proportion of both groups were comprised of blacks and women, two populations that weren’t generally afforded full rights in many public and social arenas at the time.

With the 33-28 vote passage of the New York State Domestic Workers’ Bill of Rights in the Senate, New York is likely to become the first state in the union to remedy that. The Bill is not yet final law – first, the Senate bill needs to be reconciled with the bill passed by the state Assembly and then Governor Patterson must sign it.

Bill Number S2311D would “… amend the labor law, the executive law and the workers’ compensation law, in relation to establishing regulations regarding employment of domestic workers including hours of labor, wages and employment contracts.” The purpose of the bill is stated as being to: “… provide domestic workers with a Domestic Workers’ Bill of Rights which would set out the responsibilities of employers and employees as well as rules for paid holidays, paid vacations and standard overtime.”

It’s estimated that there are about 200,00 domestic workers in New York, 93% of which are women and 95% of which are people of color. Because the Bill covers all domestic workers – both legal and illegal – it’s been fairly controversial. Opponents decry the increase in regulation, which some say will result in fewer jobs. Many opponents also bridle against any protection for illegal workers, feeling that offers a legitimacy. Proponents say that it will go a long way to regulating an industry that has no standards or oversight and afford basic worker rights to a largely ignored worker population. Many of those in favor of the bill also think that shedding light on some of unregulated business segments which have historically been magnets for undocumented workers will be an important step in coming to grips with the hiring of illegal workers.

In a column in the New York Daily News, Albor Ruiz notes the irony that although we trust these domestic workers with our children, our elderly parents and our homes, they are among the most exploited of society’s laborers. He cites a study by Domestic Workers United and DataCenter, which found that, “…26% of domestic workers make less than the poverty line or the minimum wage rate. Also, 33% say they have been abused verbally or physically, and half report working overtime but not being paid for it. Health insurance from their employer is a rare luxury – only 10% get it.”

From our viewpoint, we think all employers have the responsibility to provide a fair and safe workplace for all employees, regardless of the work population involved – legal, illegal, here in the US, or offshore in other countries. It’s simply the right thing to do. But for those who don’t share this value, it generally makes sense from a cost perspective, too. In our experience, doing the right thing by employees is less costly in the long run.

This blog originally appeared in WorkersCompInsider.com on June 7, 2010. Reprinted with permission.

About the Author: Julie Ferguson is an insurance industry consultant with more than 20 years experience developing and implementing communications programs for workers compensation, workplace health & safety, employee communications, and general insurance programs. She founded and serves as editor for the nation’s first insurance weblog, Lynch Ryan’s Workers Comp Insider. She also founded and manages HR Web Café, a weblog for ESI Employee Assistance Group; Consumer Insurance Blog for the Renaissance Insurance Group; and is one of the administrators of Health Wonk Review, a bi-weekly health policy carnival. If you have a question for Julie, you can reach her at [email protected]


Share this post

Labor Department Unveils Regulatory Priorities for 2010

Share this post

Today, the Department of Labor released its Fall 2009 Semi-Annual Regulatory Agenda (PDF). That may sound dull, but if you care about good jobs and safe workplaces, you should care about this, because it signals the Department’s regulatory priorities for the year to come. And now that we have a Labor Department with leaders who actually care about workers, we’re seeing movement on a wide range of issues that languished throughout the Bush Administration.

The good news: the Labor Department is moving swiftly to clear out the backlog of rules stuck in the pipeline, to reverse bad decisions by the Bush Administration, and to start fulfilling a new agenda based on protecting workers first. Millions of workers on construction sites, in factories, warehouses, nursing homes, truck terminals and other vital industries will all benefit from the Administration’s commitment to workers’ rights.

The new agenda includes action on a wide range of issues, including:

  • Advancing towards safety standards to protect workers from combustible dust (the need for which we have written about at length), diacetyl (the source of “popcorn lung”), pandemic flu, and silica dust
  • Documenting the epidemic of musculoskeletal disorders (MSDs) that more and more workers suffer from each year
  • Amending the recordkeeping regulations of the Fair Labor Standards Act (FLSA) to require that workers receive pay stubs, and that those pay stubs break down how their pay was computed, helping workers guard against wage theft
  • Implementing President Obama’s Executive Order #13496, which requires all government contractors to post notices of their workers’ rights under federal labor laws — a move that will better inform a fifth of the private-sector workforce of their rights
  • Conducting a review of the regulatory protections that apply to temporary non-agricultural guest workers, which were weakened by the Bush Administration in one of its final acts.

*This post originally appeared in Change to Win on December 7, 2009. Reprinted with permission from the author.

About the Author Jason Lefkowitz: is the Online Campaigns Organizer for Change to Win, a partnership of seven unions and six million workers united together to restore the American Dream for everybody. He built his first Web site in 1995 and has been building online communities professionally since 1998. To read more of his work, visit the Change to Win blog, CtW Connect, at http://www.changetowin.org/connect.


Share this post

Don’t Cut Legal Corners When Starting Your Business

Share this post

Despite the difficult economy, a record number of new businesses are being created this year. When you’re starting a new business from scratch, there are a few things to keep in mind that will help you create the foundation for a good workplace – and protect your organization from the costly litigation that could result from failure to comply with employment laws.

1. If you have employees, you need a payroll service. If you’re only paying yourself, then maybe you can get by with QuickBooks or another basic accounting system. But once you begin to hire employees, you will save time and money (as well as the grief of worrying about whether your employees are being paid properly) by using a payroll service. Many banks and other service providers offer this service to their small business account holders, and the fees are a reasonable, giving this path an immediate payoff.

No one wants the IRS or Department of Labor at their doorstep, and not paying payroll taxes properly is a sure way to attract an agency’s attention. Most payroll services will also help with related administrative tasks, like tracking sick and vacation leave, allowing you to focus your energy and attention on growing the business.

2. Adopt personnel policies. Then follow them. While many start entrepreneurial ventures seeking an informal and collegial environment, and desiring to move away from the bureaucratic practices of large corporations, one of the best ways to assure that your business resembles the workplace that you seek is to establish fundamental policies to guide how you operate. It’s not hard to find a model set of personnel policies and adapt them to your business. They provide a basic shared understanding between the organization and the employees about they can expect from one another, and they underline your commitment to treat employees legally and fairly. They will also force you to think about the kind of workplace culture you wish to cultivate, and what expectations you have for your team.

The time you spend now, whether with a lawyer or HR professional, or even purchasing model policies for sale over the Internet, will directly correlate to the time saved later in preventing problems and dealing with employment issues fairly and efficiently.

3. The number of employees you have should not affect your policies. Although a number of workplace laws only apply to businesses with a certain number of employees, their intent is fair treatment of employees. For example, under Title VII of the federal Civil Rights Act, certain discrimination laws apply to employers with 15 or more employees. If you’re smaller than that magic number, then you might be tempted not to worry, because the laws don’t apply to you. Resist that temptation. If you’re successful, you’re going to keep hiring more employees, right?

If you start out not complying with employment laws, who’s going to be paying attention – much less transforming your policies and procedures – when you hit that magic number? And you just might be wrong about the number. For example, the antidiscrimination laws in California apply to employers with five or more employees, except the law prohibiting sexual harassment, which kicks in with only one employee. Fair practices are good policy, regardless of the size of your organization – and they help you avoid problems later.

4. Pay people what you’ve agreed to pay them, what the law requires and on time. The first commitment that an employer makes to an employee is to pay the employee at an agreed upon rate on a regular and predictable schedule. This is the first step in developing a trusting relationship with employees, and failure to do so damages your credibility as an employer.

While a full discussion of wage and hour issues is complex (more information is available here), you don’t have to be an employment law expert to know that you need to pay your workers what you’ve agreed to pay them. Regulations around pay are a good example of laws tied to the number of employees, and it is wiser to comply with Fair Labor Standards Act rules now rather than waiting until the organization has grown to meet its requirements.

No one can guarantee that you won’t face a lawsuit at some point. The law is complicated, and people make mistakes. Often no one can predict how the law will be applied in a particular situation until it presents itself. But unhappy employees are more likely to file lawsuits, and that’s not something you want to deal with regardless of the merits.

Entrepreneurs who follow these basic principles from the beginning can help ensure fewer problems as their ventures grow and thrive, and are more likely to end up with satisfied and loyal employees who can make real contributions to the incremental and successful expansion of their business.

About the Author: Paula Brantner is Executive Director of Workplace Fairness, which hosts the Today’s Workplace blog, and has worked as an attorney in the area of employment discrimination and civil rights law for over 16 years. Workplace Fairness is a nonprofit organization that provides information, education and assistance to individual workers and their advocates nationwide and promotes public policies that advance employee rights.

This article originally appeared in winningworkplaces.org. Reprinted with permission of the author.


Share this post

Follow this Blog

Subscribe via RSS Subscribe via RSS

Or, enter your address to follow via email:

Recent Posts

Forbes Best of the Web, Summer 2004
A Forbes "Best of the Web" Blog

Archives

  • Tracking image for JustAnswer widget
  • Find an Employment Lawyer

  • Support Workplace Fairness

 
 

Find an Employment Attorney

The Workplace Fairness Attorney Directory features lawyers from across the United States who primarily represent workers in employment cases. Please note that Workplace Fairness does not operate a lawyer referral service and does not provide legal advice, and that Workplace Fairness is not responsible for any advice that you receive from anyone, attorney or non-attorney, you may contact from this site.