Under New Jersey law, the field of home care services is regulated by the NewJjersey Department of Health, and the copious regulations can be found in N.J.A.C. 10:60. Home health aides and home health nurses are credentialed by the NJ Board of Nursing. The requirements for licensure of Home health care agencies can be found at N.J.A.C. 8:42, Home Health Agency Licensing Standards. By 2017, all home health care agencies will have to be licensed and meet these requirements. Here are the rules: NJAC 10-60_Home Health Care Manual . The federal Department of Labor has many of its own regulations as well.
New Jersey treats domestic employees as any other employees who are entitled to the protection of the wage and hour laws. Federal law also contains many specific requirements for homecare workers. Among these are rules pertaining to payment of minimum wage, whether sleep time is included as paid time, and more.
The employer’s obligations are also discussed in the state’s gross income tax booklet. And h Here is a technical bulletin from the Division of taxation:Household Employees N J Treasury Technical Bulletin
Previously I blogged about the distinction between independent contractors and employees and issues with payment arrangements.
When setting up a paid in-home companionship or caregiving arrangement, it is vital that you examine all of the requirements contained in the federal and state laws. A person who is acting under their authority as Guardian or as agent under power of attorney could be held to the same standard as the principal (aged or disabled employer) themself. Failure to adhere to the requirements could lead to investigations and penalties if the relationship doesn’t work out. And of course, failure to document or failure to prove the payments made for the work can lead to Medicaid penalties for alleged transfers of assets.
Call us for advice and assistance in structuring an elder care plan … 732-382-6070