Reply to Is the stipend the same across the country?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]IMO, this made things less clear and exposed host families to more liability. Since it isn't clear what can be deducted, or in what ways APs are like employees and in what ways they aren't, those issues will like be resolved in litigation against host families. [/quote]

I am a HM and attorney who practices in this area of law. I am not giving legal advice but my understand is that This is correct. As I read it, What the negotiated language does is remove the agencies from claims that they are wrongfully advising host families about what the appropriate pay is.  Among the arguments made by the APs in the lawsuit:  that they were entitled to minimum wage under stare and federal law (and that federal regulations do not allow deductions for room and board when the employees are required to live in the residence). The judge in the class action had, in several rulings, sided with the APs on these issues  but this settlement ended the case w/o a trial.

Theoretically APs are free to sue HFS claiming underpayment it wages if they are making less than minimum wage. Whether this is likely or not is another  question of course.  But it is accurate to say that there is at least some risk of liability in paying less than minimum wage. [/quote]

Right, but realistically, especially with our friends on the Supreme Court's recent ruling on the  Federal Arbitration Act which essentially means that all groups of employees can be compelled to individual arbitration. Attorneys are not going to take on au pair individual arbitration claims. Au pairs are not going to sue host families individually - again, no one is going to take their case. Without the specter of a large class action, there is no cudgel. The agencies are surely lobbying for a legislative fix or exemption. [/quote]

Arbitration is only required if you sign an arbitration agreement. Not generally. Flsa and state wage laws state that if the plaintiff wins the defendant pays the plaintiffs attorneys fees. Damages are liquidated - which means whatever pay is owed is doubled.  It is not necessarily nominal at all. [/quote]

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