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Why Run From Agencies That Use "Independent Contractors?"

Public discourse about so-called “independent contractor” caregivers is one of the the top-debated issues in the home care industry in California today.

 

Despite use of so-called independent contractors by many agencies claiming to full-service, it is not legal. Some agencies that claim to be “full service” don't even inform their clients of the risk. Full service means -- among other things  -- that employment taxes are withheld and paid to Federal, state, and local authorities. And it means there is Workers' Comp insurance in place. 

 

To the surprise of most people, neither an employee nor an employer decides employment status. It’s is determined by separate “tests” used by the Labor Department, the IRS, and California’s Employment Development Department.

 

(Ironically, a person can be classified as an IC for one purse...say, the IRS...while being an employee in the eyes of either or both of the other government bodies.)

 

Reputable home care agencies employpeople. Period.

 

The California state government web site provides clear guidance on this matter, and the IRS provides an in-depth publication on the matter.