Managing caregiver overtime can be extremely challenging with a 40 hour work week.

managing caregiver overtime

Managing caregiver overtime burdens with your private caregiver

When working with a private caregiver it is important to be aware of minimum wage and overtime requirements. Managing caregiver overtime is essential.

Abby Services is commited to helping clients find excellent in-home caregivers. This includes helping find solutions to managing caregiver overtime.

As part of our ongoing commitment to compliance with all state and federal regulations, we at Abby Services wanted to make our clients aware of recent Labor Law changes. These changes specifically affect how clients are managing caregiver over time.

The United States Department of Labor released a document titled “Paying Minimum Wage and Overtime to Home Care Workers” on March 30, 2016. This document explains that consumers can and will be ultimately responsible for compliance with newly interpreted overtime laws in relation to the elimination of the Companionship exemption. This law particularly affects how clients are managing caregiver overtime.

The elimination of the companionship exemption harms consumers seeking in home care and caregivers.

Abby Services believes the elimination of the companionship exemption is harmful to clients by affecting continuity of care, and the ability to fully self-direct your own care.

The decision is also harmful to Private Caregivers by limiting their autonomy and earning potential.

Unfortunately, Abby Services, and the individuals we serve, have to recognize these laws or risk penalties for non-compliance.

Many clients are managing caregiver overtime by limiting their caregivers to 40 hours per week.

Other clients, and caregivers, have chosen to renegotiate their rates when managing caregiver overtime.  

Should you have any questions please let us know.

So what are a clients overtime options when managing caregiver overtime?

One difficult situation arises when a private caregiver chooses to work for multiple clients. Although individual clients may not exceed a 40-hour workweek, collectively they may.

In these situations caregivers and clients may negotiate a rate that factors in overtime requirements, unfortunately, the situations where this is practical are extremely limited and largely impractical. This makes managing caregiver overtime challenging.

One mutually favorable scenario clients and their caregivers have requested, and chosen, is an option sometimes referred to as cost-neutral or budget-neutral billing. In this scenario, clients and caregivers negotiate and establish billing and pay rates complying with overtime laws, that would be equal to traditional non-overtime rates.  

Again this scenario can be cumbersome and challenging when managing caregiver overtime.

Ultimately the choice on how to manage these issues lies with clients and their caregivers.  Should you have any questions please let us know so that we can help, we are here for you.

Many clients and private caregivers have asked what they can do to fight this change. Our lobbying group The PCA (Private Care Association)  has proposed Senate Bill S.2221 and House Bill H.R.3860 which is an effort to get the Companionship Exemption Reinstated.

There are a lot of Republicans that have agreed to co-sponsor the bill. PCA is working on getting support from the Democrats. PCA has had several say they would co-sponsor the bill if other Democrats would also put their names on it. They are urging caregivers, patients, and their families to contact their Congressmen and ask them to support our bill! Here is how to find your congressman. We encourage you to contact your lawmakers with your concerns about managing caregiver overtime.

The following is a letter we have sent to our states Congressional leaders and members of our state Senate:

My name is Scott Strachan. I am an RN and small business owner in Fort Myers, Fl. I own and operate my family’s Nurse Registry which has been serving our area since 1996.

Recently the Department of Labor has begun intentionally and aggressively targeting Florida Nurse Registries. Florida Nurse Registries are Licensed and regulated by the Agency for Healthcare Administration and help our senior population find the quality, cost-efficient caregivers they need and want. As of April 2016, there were 554 Licensed Nurse Registries in Florida.

If the DOL continues with its aggressive stance toward our industry, Nurse Registries across the state will be shut down. This will close over 500 Florida small businesses, put thousands of employees out of work, put tens of thousands of clients at risk, and limit tens of thousands of home care workers’ ability to find work. This is a serious crisis for our industry, and for our state, and we need your help.

Our industry requires the ability to correctly and appropriately work together with Independently Employed Private Caregivers. Based on recent reinterpretations, and overly aggressive enforcement of federal law, the DOL is in effect crushing an industry that has served the residents of our state for many years. These actions have broader implications for all Independently Employed individuals, those who use their services, and those who work together with them.

I am asking for your support and intervention on a federal level to protect our state’s residents, business owners, and hardworking caregivers. I will be reaching out to my congressional delegation and members of the senate because I know our state’s small businesses and the services they provide are important to them.

Thank you for your service,

Here is the contact information for our current Florida Congressional Delegation for anyone wishing to voice their concern about the challenges of managing caregiver overtime:

“Communications Director George M. Cecala” <[email protected]>,
Deputy Chief of Staff/Legislative Director Ellen McLaren <[email protected]>,
Legislative Analyst Timothy ‘Tim’ Cummings <[email protected]>,
Legislative Assistant Andrew Callahan <[email protected]>,
Legislative Assistant Ashley Rose <[email protected]>,
Legislative Assistant Brittany Posobiec <[email protected]>,
“Legislative Assistant Catherine (Skitsko) Harden” <[email protected]>,
Legislative Assistant Christopher Ferrer <[email protected]>,
Legislative Assistant Evan Lee <[email protected]>,
Legislative Assistant Genesis Robinson <[email protected]>,
Legislative Assistant Reggie Paros <[email protected]>,
Legislative Assistant Vanessa Duguay <[email protected]>,
“Legislative Assistant/Director of Outreach J.R. Sanchez” <[email protected]>,
Legislative Assistant/Press Assistant James Rockas <[email protected]>,
Legislative Correspondent Alyssa Wang <[email protected]>,
Legislative Counsel Alyssa Wootton <[email protected]>,
Legislative Counsel Becca Brown <[email protected]>,
“Legislative Director Diane L. Cihota” <[email protected]>,
Legislative Director Elizabeth Brown <[email protected]>,
Legislative Director Hill Thomas <[email protected]>,
Legislative Director Joseph ‘Joe’ Racalto <[email protected]>,
Legislative Director Juan McCullum <[email protected]>,
Legislative Director Kelsey Moran <[email protected]>,
Legislative Director Sean Brady <[email protected]>,
“Legislative Director Thomas P. Power” <[email protected]>,
“Policy Advisor [Intern Coordinator] Aimee Collins-Mandeville” <[email protected]>,
Policy Advisor Seth Extein <[email protected]>,
“Press Secretary/Senior Legislative Assistant Evan N. Polisar” <[email protected]>,
Senior Legislative Assistant Chris Sweet <[email protected]>
6/7/17 Update:
U.S. Secretary of Labor Alex Acosta announced this morning, June 7, 2017, the withdrawal of Administrator’s Interpretation 2015-1, which significantly expanded the “economic realities” test used to define the term “employee” for purposes of the Fair Labor Standards Act (“FLSA”).  Secretary Acosta also announced the withdrawal of Administrator’s Interpretation 2016-1, which expanded the test for joint-employment under the FLSA.
The following is a link to the announcement: httpss://www.dol.gov/newsroom/releases/opa/opa20170607
This is a significant victory for Nurse Registries and the caregivers who use registries to obtain client referrals, as it increases the level of certainty that their intended independent-contractor relationships will be respected for purposes of the FLSA. Stay tuned for more information. This decision may have an impact on how clients proceed when managing caregiver overtime as well.

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