Justices review $100M award for home care workers

SEATTLE — Justices on the Washington Supreme Court are considering whether the state should have to pay a $100 million verdict awarded to some 22,000 home care workers who were shortchanged by a rule that was in effect from 2003 to 2007.

Under the Department of Social and Health Services rule, workers who cared for low-income, severely disabled people automatically had their pay reduced by 15 percent if they lived with the person they cared for. The department reasoned that if the caregivers lived at the home, then some amount of the work the caregivers performed — cooking, for example — would benefit the caregiver, who shouldn’t be paid for it.

The state Supreme Court struck down the policy in 2007, saying it was inconsistent with federal Medicaid rules. The workers sued to get the money they said they were owed, and the recipients of the care sued as well. After tortuous litigation that included a detour into federal court, the recipients were not awarded any money, but a Thurston County Superior Court jury sided with the workers in 2011 and awarded $57 million.

A judge tacked on interest, bringing the total award to more than $100 million. The state appealed, and the justices heard arguments Tuesday.

“DSHS reversed over two decades of practice … under which it paid providers for all services they worked,” John White, an attorney for the workers, told the court. “DSHS eliminated payment for a portion of the hours that it required live-in providers to work.”

The state relies on in-home caregivers as a cheaper, more humane alternative to institutionalized care for poor, disabled people. While the disabled people themselves are considered the employers of the caregivers for legal reasons, the state writes the contracts for the caregivers, letting them know how many hours of care the disabled people are entitled to under Medicaid.

A lawyer for the state, Deputy Solicitor General Jay Geck, asked the justices to reverse the verdict on several grounds. He noted that the lower court’s jury found that the state did not breach its contracts with the caregivers; instead, it found that the state’s decision to reduce the workers’ pay violated a duty of “good faith or fair dealing” that the state owed to them.

The state insists that although it is required to act in good faith, it satisfied that obligation by following the terms of its contracts with providers.

“The contracts were utterly clear,” Geck said. “The providers would be paid only the amount awarded to the individual clients under Medicaid. They said they would accept that amount.”

Geck also said that if the justices don’t reverse the verdict, they should at the very least reduce it. He argued that the lower court should never have awarded interest, because under the law, interest can only be tacked on to damages that are totaled specifically, rather than estimated — a point contested by the workers’ lawyer.

A summary of the case produced by DSHS and the state attorney general’s office highlights the financial concerns posed by the verdict.

“The judgment in this case is unprecedented and undermines the fiscal planning needed for all DSHS programs,” it said. “This is detrimental to the people who rely on funding for DSHS services, the taxpayers, and the continued viability of public assistance programs.”

But in an interview, White argued that DSHS expected workers to perform the work and they should be paid for it. Many of them were making close to minimum wage, and the 15 percent reduction put many below minimum wage, he said.

“The state wouldn’t need to come up with the judgment if the Department of Social and Health Services had done what it was supposed to do in the first place,” White said.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Olivia Vanni / The Herald 
The Mukilteo Lighthouse. Built in 1906, it’s one of the most iconic landmarks in Snohomish County.
The Mukilteo Lighthouse. Built in 1906, it’s one of the most iconic landmarks in Snohomish County. (Olivia Vanni / The Herald)
Mukilteo mayor vetoes council-approved sales tax

The tax would have helped pay for transportation infrastructure, but was also set to give Mukilteo the highest sales tax rate in the state.

South County Fire plans push-in ceremony for newest fire engine

Anybody who attends will have the opportunity to help push the engine into the station.

Marysville Mayor Jon Nehring gives the state of the city address at the Marysville Civic Center on Wednesday, Jan. 31, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Marysville council approves interim middle housing law

The council passed the regulations to prevent a state model code from taking effect by default. It expects to approve final rules by October.

x
State audit takes issue with Edmonds COVID grant monitoring

The audit report covered 2023 and is the third since 2020 that found similar issues with COVID-19 recovery grant documentation.

Bothell
Bothell man pleads guilty to sexual abuse of Marysville middle schoolers

The man allegedly sexually assaulted three students in exchange for vapes and edibles in 2022. His sentencing is set for Aug. 29.

Larsen talks proposed Medicaid cuts during Compass Health stop in Everett

Compass Health plans to open its new behavioral health center in August. Nearly all of the nonprofit’s patients rely on Medicaid.

Monroe Mayor Geoffrey Thomas talks to the crowd about the new "Imagine Monroe" city flag and symbol before the ribbon cutting on Monday, July 14, 2025 in Monroe, Washington. (Olivia Vanni / The Herald)
Monroe unveils its new $17M City Hall and municipal court

Mayor Geoffrey Thomas showcased the new campus to residents, local and state officials during a celebration Monday.

Community members gather for the dedication of the Oso Landslide Memorial following the ten-year remembrance of the slide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
The Daily Herald garners 6 awards from regional journalism competition

The awards recognize the best in journalism from media outlets across Alaska, Idaho, Montana, Oregon and Washington.

National Weather Service issues red flag warning for slopes of Cascades

High temperatures, low humidity and winds are combining for critical fire weather conditions, either “imminent or occurring now.”

Photo courtesy of Graphite Arts Center
Amelia DiGiano’s photography is part of the “Seeing Our Planet” exhibit, which opens Friday and runs through Aug. 9 at the Graphite Arts Center in Edmonds.
A&E Calendar for July 10

Send calendar submissions for print and online to features@heraldnet.com. To ensure your… Continue reading

Lynnwood
Lynnwood child, 4, accidentally shoots mother, father arrested

The child retrieved a loaded firearm from his father, who was asleep at the time, South County deputies said.

Opponents of President Donald Trump’s executive order indefinitely halting refugee resettlement in the U.S. rally on the steps of the federal courthouse in Seattle on Feb. 25, 2025, after a judge issued a ruling blocking the president’s order. (Photo by Jake Goldstein-Street/Washington State Standard)
Refugees from travel ban countries must be allowed to enter US, Seattle judge rules

It’s the latest twist in the legal battle over President Trump’s attempt to block refugee resettlement.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.