ARIZONA STATE SENATE
Phoenix, Arizona
direct care services;
employment standards
Purpose
Requires state agencies that
contract with a private or public entity to provide direct care services, to
require the entity to comply with the federal Fair Labor Standards Act (FLSA).
Background
The U.S. Office of Personnel
Management and the U.S. Department of Labor (USDOL) describe the FLSA as
establishing minimum standards for wages, overtime entitlements, record keeping
and child labor standards. Presently,
covered nonexempt workers are entitled to a minimum wage of at least $4.25 per
hour. Overtime pay is required for
these workers at a rate of not less than one and one-half times their regular
rates of pay after working 40 hours in a week.
According to the USDOL, the FLSA does not require vacation, holiday,
severance or sick pay; meal or rest periods, holidays off or vacations; premium
pay for weekend or holiday work; pay raises or fringe benefits; and a discharge
notice, reason for discharge or immediate payment of final wages to terminated
employees. Direct care services are
generally defined as any service directly provided to a client or
recipient.
Because potential costs
relating to contracts and other factors could accrue to the state, the fiscal
impact of this legislation is unknown.
Provisions
1. Requires state agencies that contract with a private or public entity to provide direct care services, including home care, personal care, home health, adult day health care, residential and other supportive long term care services, to require the entity to comply with the FLSA.
2. Requires the entity providing the direct care services to propose competitive, fair and market wages for the direct care staff in its rate proposal.
3. Requires state agencies to incorporate the rate proposal requirement and the requirement to comply with the FLSA into all requests for proposals and contracts for direct care services.
4. Becomes effective January 1, 2002 and applies only to contracts entered into after this date.
Amendments
Adopted by Committee
1. Expands contract requirements to cover public entities.
2. Expands types of direct care services covered.
3. Specifies an effective date and applicability.
Senate Action
GOV 2/12/01 DPA 5-0-1-0
Prepared by Senate Staff
February 14, 2001