Loss of Overtime Exemptions; What is the Impact of This Newly Imposed Law to the Workers and Patients of CARE?
For over fifty years, the care industry has been exempt from the wage and overtime laws that were imposed by other types of industries; such as retail, construction, and other manual labor sectors. However, the Louisiana Dept. of Labor recently vacated this exemption, requiring care services and other healthcare resources to pay overtime wages for any hours an employee works over (40).
What Does the Loss of Overtime Exemptions Mean to You?
Because the reimbursements we receive are primarily from insurances, government programs, or out-of-pocket payments from patients, CARE Inc. does not receive enough to cover the cost of overtime wages. Hence, this will require us to greatly reduce the number of hours that our caregivers are allowed to work going forward. Many of the caregivers who were with families in excess of 50 to 60 hours will now be limited to 40 hours.
Please be aware that we are acutely aware of the disruptions this new mandate may cause to the staff members, their families, and the families we serve. CARE Inc. does care about this greatly and is aware of the hardships it may cause, but we are doing everything within our power to limit the impact of this new regulation. We are hiring sufficient staff to cover the extra shifts, as well as working on a schedule with the existing staff, knowing they may need to seek additional employment to replace the lost income from a shortfall in hours.
We also realize the adjustments this may require on the part of the families we serve. Many of these families come to rely on certain caregivers on our teams. They become like part of the extended family. But because we must cut their hours down to 40, some of the families who have caregivers around the clock or on certain days of the week might now be introduced to new CARE Inc. staff members, many of whom are part of our “Elite Team”.
CARE Inc. will still apply the same great principles of integrity, commitment and trust to all of these situations and changes. When things are beyond our control, we will simply make the best decisions for each individual and family; both our great clients and the awesome staff members we employ. Please do not be alarmed, as we will make sure to limit any negative consequences and will always seek the most positive outcomes for everyone. We hope you understand these changes are not something we have chosen, but rather, the overtime exemption law dismissal in Louisiana has affected us.
Most of all, we thank you for caring about CARE, Inc. as much as we care about all of you!