Lower pay for related care givers struck down

Minnesota Lawyer (Dec. 24, 2012, subscription required) has an interested article regarding Minn. Stat. 256B.0659 (2011).  In 2011, the Minnesota legislature passed a bill stating that non relative personal care attendants were to receive a pay rate of 80% of the non relative pay.  In other words, relative personal care attendants would receive a 30% pay cut.  In Healthstar v. Home Health, Inc. v. Jesson, the Court of Appeals reversed the Ramsey District Court decision.  The court struck down the statute.

The court held that the statute did not meet the prong of showing that the bill was not manifestly arbitrary of fanciful, but that it must be genuine and substantial.  The court stated that the commissioner’s argument was “based on an assumption that relative PCAs will continue to provide care even if affected by a pay cut.”

The court further stated that “the rationale for the distinction advanced by respondent is based purely on assumptions rather than facts, including the apparently unchallenged assumption that a moral obligation to provide care for a relative necessarily equates to a moral obligation to personally provide such care at a lower rate of pay than a nonrelative PCA would receive for the same work.”

The Court of Appeals also held that the statute did not meet the prong that the classification must be genuine or relevant to the purpose of the law.  The court stated that the commissioner did not show any facts in support of its assumption.

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