California AB 241

• Effective January 1, 2014, a new law called The Domestic Worker Bill of Rights was enacted which defines domestic work as services related to the care of persons in private households or maintenance of private households or their premises.
  

• Domestic work occupations include caregivers of elderly persons, people with disabilities, sick or convalescing, and other household occupations, either full time or part time work.
  
  

• "Domestic work employer" includes an individual who employs or exercises control over the wages, hours, or working conditions of a domestic work employee.
  
  

• This definition confirms the private person organizing the care rather than the individual needing the care as the employer.
  
  

• Before AB241 families in need of 24 hour care would typically hire a live in caregiver. Providing room and board has traditionally been part of the caregiver’s compensation in addition to an agreed upon monthly monetary payment.
  
  

• After Jan 1, 2014, the room and board portion cannot be considered part of the compensation to the caregiver for their services.
  
  

• Compensation/wages now are entirely an hourly calculation of at least minimum wage (currently $ 9 per hour) for every hour worked, (asleep or awake in the household).
  

• Now 24 hour care is 24 paid hours at your negotiated hourly rate.
  
  

• A shift over 9 hours in a day or 45 hours in a week is earns wages at time and ½.

• This makes how those hours are structured vital to how much each day of care costs. The least possible cost is 4 caregivers in 8 hour shifts. One alternate caregiver would be needed to cover any sick days of the other 4 caregivers so that everyone stays under 45 hours a week.
  
  

• AB241 also requires that the private employer withhold and pay all regular employee / employer taxes. Such as Federal and State withholding, California Disability Insurance, California Unemployment Insurance along with a few other minor taxes.
  
  

• Worker’s Compensation Insurance is a separate insurance from regular payroll taxes and is required also. (The CA State Compensation Insurance Fund can be contacted at 888-782-8338.)
  

• AB241 includes a provision for employees to apply for and receive Unemployment Insurance payments or Disability Insurance payments, regardless of whether or not the employer has purchased the insurance.
  

• This allows the state to both protect the worker and to verify with the individual-employer that all tax payments and-or penalties have been applied.
  

• Personal assets of the employer can be attached by the State or Federal government to pay the domestic worker all unpaid wages and related taxes.