Here are some excellent updates to household employment law sent to us from LivHOME in Santa Barbara, CA. It is essential for your career and for the protection of employers and employees that you understand all the applicable rules governing in-home employment. Enjoy.
In an effort to keep you abreast of the recent legal changes in the home care arena and to support your role as a trusted advisor to your clients, LivHOME has summarized some of the changes below. These issues may impact your client’s risk, financial exposure and decision-making when they are considering care at home and future planning. Risks to companies and families who are non-compliant to these new laws include potential fines, penalties, and retroactive pay with interest, increased liability and lawsuit potential, and Home Care Organizations subject to lose their license (reference web links below for details).
The following is a list of the major changes regarding home care and domestic employment:
AB241 The Domestic Workers Bill – This CA law became effective 01/01/2014 and initiated new overtime rules for caregivers, amending a previous wage order which had exempted in-home caregivers from overtime and break times. AB241 requires caregivers be paid overtime after 9 hours per day and after 45 hours per week. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB241
The U.S. Supreme Court affirmed the Home Care Final Rule and ruled 10/13/15 the Companionship Exemption for weekly overtime ends nationally, and all employers in the U.S. must pay overtime after 40 hours weekly. This rule includes no mention of daily OT and thus CA daily OT after 9 hours continues. http://www.dol.gov/whd/homecare/litigation.htm
Mendiola v. CPS Security Solutions, Inc. – This is a CA Supreme Court ruling in January 2015 that drastically impacted the home care industry’s Live-in option. The CA Supreme Court ruled that employees must be compensated for the time they are sleeping while at work. This has caused Live-in costs to skyrocket, and in most cases, become obsolete. http://scholar.google.com/scholar_case?case=13087198080952872372&hl=en&as_sdt=6&as_vis=1&oi=scholarr
AB1217 Home Care Services Consumer Protection Act – This CA home care licensure and caregiver registration law became effective January 1, 2016. This requires all Home Care Organizations (HCOs) to become licensed with the state. This also requires all agency caregivers to be registered with CDSS, the CA Dept. of Social Services, after they clear a fingerprint background check and receive specialized initial and ongoing training. Organizations that do not comply with the new law will be penalized by the state. This law does not apply to caregivers employed directly by seniors and their families. http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB1217