Home Care (Caregiving) industry at risk in California

Caregiving industry was affordable before. But since the implementation of Assembly Bill 241 (Caregiver Law) last January of 2016. The caregiving industry is on a steady decline. Before this AB 241 was implemented, a family could still afford to have a companion or a caregiver in the comfort of their own homes. Because during those times, people who needed help would be billed a single flat daily fee for in-home care professionals to take care of them.

But with this new regulation/law. It became impossible for the declining middle-income family to afford it to look after their loved ones while they are away from home working.

Because of AB-241, it is now a law to pay caregivers on an hourly basis. And it also mandatory to pay time and a half after 9 hours, then double time after 12 hours.

I do not have anything against minimum wage increase for the benefit of the caregivers, but as you all can see... prices of the basic things we need are going up as well. So it kinda doesn't make sense because it just evens out...

There are two parties that are affected by these laws as per my observation.

1. Caregivers are being hired directly by families and not knowing the liability that entails if their directly hired caregivers get into an accident or the caregiver could also file with the labor department for not paying the minimum wage and not reporting to IRS that the caregiver is considered their employee.

2. This AB-241 created rouge agencies who are still charging a flat fee and it backfired on the other home care agencies that are complying with the law required by Home Care Services Bureau under the Department of Social Services here in California.

ADVANTAGES:

• It lessens the re-admission to hospitals because they have one-on-one care.
• Survey has shown that people who had one-on-one care tends to live longer.
• It provides less stress to the family as a whole.

DISADVANTAGES:

• Family members who are the caregivers are more likely to die earlier due to extreme stress and they will experience burnouts. Just imagine.. they need to look after them almost 24/7.
• Due to this new caregiver law, most of the elderly will eventually end up either in a board and care facility or worse case scenario is in a nursing home wherein their loved ones will deteriorate fast.

I hope the State would consider making a different pay rate for these type of service. To make it affordable for the family who needs assistance to take care of their loved ones and a fair pay rate for the caregiver as well. And hopefully, it'll also be recognized by Medicare/MediCal as a legitimate service Because all of us would prefer to be in our own homes as we age.