LA Times: Cost of caring for elderly, disabled Californians to rise

By Chris Megerian

September 17, 2013, 9:56 p.m. 

SACRAMENTO — The cost of providing care to elderly and disabled Californians is set to increase in about 15 months because of new federal rules on overtime.

The new regulations, announced Tuesday by the U.S. Department of Labor, will require overtime pay for almost 2 million more workers nationwide, including nearly 360,000 caregivers in California’s taxpayer-funded home care program.

Gov. Jerry Brown‘s administration estimates that the overtime will cost the state an extra $150 million annually for its In-Home Supportive Services program. The new rules won’t kick in until Jan. 1, 2015; federal officials said that will give states such as California time to prepare.

“We want to make sure states have an opportunity to make any changes they need to make in order to have a smooth transition,” said Laura Fortman, the principal deputy administrator for the U.S. Department of Labor’s Wage and Hour Division.


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