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“Knock, knock!” “Who’s there?” “DEPARTMENT OF LABOR!”

posted by: Amed Realty in Uncategorized

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Did you know that the live in model for caregivers that has been used by most RCFE owners for the last 20 years is at risk? This traditional, tried and true formula is under attack and is being targeted by the Department of Labor. There have been many Federal and State audits by Department of Labor fining RCFE owners hundreds of thousands of dollars, some even over $1 million, putting many RCFE owners in bankruptcy and out of business. 6beds members have let us know this is their top priority. 6Beds, Inc. leaders have been meeting with State and Federal labor officials since last summer asking for a moratorium on audits until DOL will clarify the parameters in which we can employ live in caregivers. Two of the key issues we’ve been working on have been understanding the determination of hours worked under applicable laws and what the necessary agreement and supporting documentation is that our industry needs to be compliant with the live in caregiver model. Our attorneys, Littler and Mendelson have been using the information gathered from these meetings, in combination with its own extensive legal research, to formulate a compliance model for 6beds members. Feedback from federal audits have revealed that members have been held responsible for paying employees’ sleep hours if they did not have the appropriate agreement and documentation in place. By including the appropriate live-in caregiver agreement, timesheet, and instructive materials, the compliance model that Littler is currently developing will help reduce the risk that 6 bed providers are facing. 6Beds, Inc. also recognizes that a compliance model alone will not solve all of our industry’s problems, and that we need a legislative solution to provide some relief from California’s overtime regulations. On March 17, 2015, concurrent with a rally that included hundreds of 6 bed providers, 6Beds leaders and lobbyists met in Sacramento with the Governor’s office to communicate the need for a moratorium on audits. 6Beds will next meet with California Secretary of Labor, David Lanier, to demonstrate that most 6 bed providers cannot stay in business under current labor regulations. A moratorium on audits is needed while 6Beds works with State officials to come up with a legislative solution that will address overtime laws. Stay informed by becoming a member of 6Beds, Inc. As a member, you will be able to access the legal documents provided to us by our legal team.