• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
LeadershipRoad to Wealth

Obama administration wins fight to give home care workers a raise

Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
August 21, 2015, 1:41 PM ET
WASHINGTON, DC - APRIL 10: Nordicka Burton, 30, assists Darlene
WASHINGTON, DC - APRIL 10: Nordicka Burton, 30, assists Darlene Jones on April 10 in Washington, DC. Burton works as a home health aide. Burton, a single mom, has been living with her sons at DC General and hopes to move into transitional housing soon. Burton is employed full time but has credit problems and has not been able to rent an apartment. Burton does not like the environment at DC General (she thinks there are too many hostile interactions) and tries to spend as little time at the shelter as possible. She often takes her boys to parks and a friend's house so that they don't have to return to the shelter until curfew. (Photo by Bonnie Jo Mount/The Washington Post via Getty Images)Bonnie Jo Mount—The Washington Post—Getty Images
Add Fortune on Google for similar content.

President Barack Obama can finally fulfill a promise he made to home care workers four years ago to give them more pay.

The Court of Appeals for the D.C. Circuit on Friday handed a win to the Obama administration by upholding a Labor Department ruling requiring employment agencies to pay the minimum wage and overtime to home care workers who tend to the sick, elderly, and disabled.

President Barack Obama first promised home care workers a raise in 2011 when he said he would expand the nation’s minimum wage and overtime laws so they covered those in the profession. In 2013, the Department of Labor introduced a rule that would have made good on that guarantee. The department’s guideline removed a longtime Fair Labor Standards Act exemption that had allowed third-party employers of home care workers to avoid paying the minimum wage or overtime to employees who provided so-called companionship services to clients. It was supposed to go into effect January 1, 2015.

The rule was never implemented because industry groups—the Home Care Association of America, International Franchise Association, and the National Association for Home Care and Hospice—asked a federal judge to invalidate it. The trade groups argued that having to pay higher wages would destabilize the home care industry and make it harder for families to pay for the care of aging or disabled relatives. In January, Judge Richard Leon in Washington, D.C., obliged, ruling that the Department of Labor had overstepped its power in redefining the FLSA’s 40-year-old exemption.

The court of appeals’ three-judge panel overturned the lower court’s decision on Friday when it decided that the FLSA gave the Labor Department the authority to determine how exemptions from minimum wage and overtime protections applied to in-home care services.

The debate over how much home care aides has pit the livelihood of workers against the needs of vulnerable individuals and their families, many of whom struggle to afford at-home care. That said, raising home care workers’ wages became a mission of the Obama administration because pay in the sector is so low. The median salary for a personal care aide is $19,910 annually, or $9.57 an hour; a home health aide earns $20,820, or $10.01 per hour. And as Americans age, these professions are expected to grow by 49% and 48%, respectively, from 2012 to 2022, eclipsing the average growth for all occupations: 11%. Indeed, they are the second- and third-fastest growing occupations in the nation—behind only industrial-organizational psychologist, a job that brings in median annual wages of $83,750. On the Bureau of Labor Statistics’ list of 30 fastest-growing jobs, personal and home care aides are the worst paid.

The Department of Labor’s rule only applies to third-party home aide staffing agencies, which employ nearly 1.9 million people nationwide. Workers employed directly by clients or their families are still exempt from minimum wage and overtime laws.

In a statement on Friday, the Labor Department said the court’s ruling proved that its rule was legally sound. “And just as important,” the statement says, “the rule is the right thing to do—both for employees, whose demanding work merits these fundamental wage guarantees, and for recipients of services, who deserve a stable and professional workforce allowing them to remain in their homes and communities.”

The department did not comment on when the rule would go into effect. Its opponents could still introduce further delays, says Christine Owens, executive director of the National Employment Law Project, which advocates for workers. The industry groups could file for a rehearing or file a petition for writ of certiorari to the Supreme Court.

Attorneys for the industry groups did not immediately return a request for comment.

About the Author
Claire Zillman
By Claire ZillmanEditor, Leadership
LinkedIn iconTwitter icon

Claire Zillman is a senior editor at Fortune, overseeing leadership stories. 

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

lb
PoliticsCongress
Leon Black says Epstein’s network included Elon Musk, Sergey Brin and Peter Thiel, while saying ‘I knew Jekyll. I didn’t know Hyde’
By Joey Cappelletti and The Associated PressJune 26, 2026
6 hours ago
John Collison, president and co-founder of Stripe
SuccessJobs
Stripe cofounder says Gen Z will need two college majors to compete thanks to AI—and investing legend Charlie Munger called it first
By Emma BurleighJune 26, 2026
7 hours ago
young woman looking frustrated while working on her laptop at home
SuccessCareers
Gen Z’s hiring hell is real: 1 in 3 employers admit they’re replacing entry-level roles with AI—and tech and manufacturing jobs are most at risk
By Preston ForeJune 26, 2026
7 hours ago
Fortune 500 Power Moves: Which executives gained and lost power this week
C-SuiteFortune 500 Power Moves
Fortune 500 Power Moves: Which executives gained and lost power this week
By Fortune EditorsJune 26, 2026
9 hours ago
Marketing leaders speak at Fortune's Fuel Up event in Cannes. (L-R) Natalia Ball, Mars Pet Nutrition; Zena Arnold, Sephora; Tati Lindenberg, Unilever; Laura Jones, Instacart; Ruth Umoh, Fortune
RetailCMO
The new CMO playbook: how marketers are balancing broader remits and tighter budgets
By Sam BirchallJune 26, 2026
10 hours ago
mj
CommentarySuccession
Morgan Stanley on life after selling your business: a roadmap for entrepreneurs
By Mark JansenJune 26, 2026
11 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
2 days ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
3 days ago
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
Economy
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
By Nick LichtenbergJune 26, 2026
15 hours ago
The bond market knows something about the $39 trillion national debt that Washington doesn’t
Economy
The bond market knows something about the $39 trillion national debt that Washington doesn’t
By Eva RoytburgJune 25, 2026
1 day ago
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
Economy
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
By Tristan BoveJune 25, 2026
1 day ago
Current price of oil as of June 25, 2026
Personal Finance
Current price of oil as of June 25, 2026
By Joseph HostetlerJune 25, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.