Washington News: Court Limits Live-In Wage Exemption

The Washington state Supreme Court ruled July 9 that live-in caregivers working in licensed Adult Family Homes are entitled to the protections of the state’s Minimum Wage Act, overturning an exemption that had applied to those workers. ​

The case, Bolina v. AssureCare Adult Home LLC, centered on a state law exempting live-in caregivers in Adult Family Homes from certain wage and hour protections. The Court found that exemption violates the Washington Constitution. Read the full decision. 

An Adult Family Home is a licensed residential setting in Washington that provides personal care, room and board and other long-term care services to a small number of residents in a home-like environment. Some Adult Family Homes employ caregivers who both live and work at the residence. 

The ruling is limited to Washington’s Adult Family Home industry. It does not apply to traditional home care agencies that provide services in clients’ homes, and it has no effect on the federal companionship exemption under the Fair Labor Standards Act, including any future action by the U.S. Department of Labor to restore that exemption. 

What the court did not decide 
The ruling leaves several questions open. The Court did not decide whether the live-in exemption is unconstitutional in all industries or occupations involving live-in employees, whether it violates the state’s equal protection clause, a claim still pending in the trial court, or whether the decision applies retroactively or only prospectively. The Court expressly left that last question for the trial court to resolve. 

Implications for home care agencies 
The decision appears to have limited direct application to traditional licensed home care agencies. The Court’s analysis focused on caregivers who live and work in licensed Adult Family Homes and provide around-the-clock care while residing at the worksite. Most Washington home care agencies provide scheduled services in clients’ private homes and generally do not employ caregivers under a live-in Adult Family Home model. 

Agencies that operate Adult Family Homes or use live-in caregiver arrangements at those homes should review the decision closely and monitor the litigation as it continues. 
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HCAOA will continue to track developments in Olympia, Washington, D.C. and elsewhere, and will keep members informed as this case progresses. ​