In prior posts, I have mentioned a home care agency in SoCal, named Accredited. The owner, Barry Berger, and one of his top executives, Neil Rotter, really know what they are doing. they are almost as good as Support for Home! 🙂
Recent developments pose a big risk to home care clients when an employer agency is not utilized.
Development # 1 – Have you heard of Iola Winn? In 2005, she was a then 94-year-old woman who hired Joy Cash as an in-home caregiver (at $10/hour under the table). Cash eventually sued Winn for failure to provide overtime compensation as she worked beyond 8 hours per day. Yesterday, the appealed case of Cash v. Winn was decided and the initial judgment of nearly $125,000 in overtime pay and penalties was reversed. Lucky for Ms. Winn, but how much did it cost her in legal fees? Was the stress worth it while dealing with her own end of life issues? Did Ms. Winn even understand her role as the legal employer when she decided to hire Joy Cash?
Development #2 – The IRS has made it one of their top priorities to identify and hold accountable employers who misclassify their workers as independent contractors. When evaluating the IRS’s rules, it is evident that a home care worker is not an independent contractor. The State & Federal Government are aggressively working to find every individual and employer that misclassifies its workers. By doing this, the government will gain revenue from the employee and employer payroll taxes that are not currently paid into the system. The perceived informal relationship between client and caregiver is now on the radar!
A few years back, Accredited developed a educational resource for potential home care clients titled ‘Hiring A Caregiver: Your Options as a Consumer’ Here is a link to download the flyer,
You can also get a lot of great information at the Website of the National Private Duty Association (NPDA). So, thanks very much to Accredited and to all of you, best wishes. Bert