Supreme Court denies review of minimum wage rule

Supreme Court denies review of minimum wage rule

The Supreme Court on Monday declined to review a lower court's decision upholding a rule that requires home healthcare workers to be paid overtime pay.

The nation’s second most powerful court handed a victory to the Obama administration last year when it upheld the rule. The D.C. Circuit Court of Appeals said the measure fell within the powers of the Fair Labor Standard Act (FLSA).

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The court’s decision not to review the case leaves the rule in place.

The case, Home Care Association of America v. David Weil, centers on the Labor Department’s decision in 2013 to change the definition of “domestic service employment” and “companionship services."

The new definition stated that third-party employers must pay overtime if a domestic service employee is hired to provide companionship services to elderly and disabled individuals unable to care for themselves. Previously, the third-party employers had been exempt from those rules.

“The department’s decision to extend the FLSA’s protections to those employees is grounded in a reasonable interpretation of the statute and is neither arbitrary nor capricious,” Judge Sri Srinivasan wrote in the D.C. Circuit Court's opinion last year.

In a statement, Labor Secretary Tom Perez said the court’s ruling ensures that an important group of workers are paid a fair day’s pay for a hard day’s work.

“Today’s decision by the court not to review a challenge to the final rule ensures that the rule can fulfill President Obama’s vision of an economy where hard work pays off and responsibility is rewarded,” he said. “That will mean greater economic stability for so many hard-working people. For everything they do for our families, they deserve – and now they will get – a fair shot at being able to take care of their own.”

This story was updated at 11:22 a.m.