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I was told by a former co-worker that there is a some kind of law or act passed that requires employers to allow caregivers to choose the work schedule they want so proper caregiving can be provided. Does anyone know of such of an act or law?

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No, there is a family medical leave lact (FMLA) that requires an employer to allow workers a certain amount of time off to care for immediate family. I've not heard of a flexible schedule requirement. That would be up to the employer. Most businesses wouldn't be able to operate with employees picking when they would or wouldn't work.
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According to the U.S. Dept of Labor a new law went into effect last year which has to do with pay, overtime and record keeping. https://www.dol.gov/whd/homecare/agencies-what-are-requirements.htm

"If you are a home care agency or other third party employer, effective January 1, 2015, you are required to pay at least the federal minimum wage and overtime pay to any direct care worker you jointly or solely employ, regardless of the worker’s duties. Direct care workers are workers who provide home care services, such as certified nursing assistants, home health aides, personal care aides, caregivers, and companions."

"Also effective January 1, 2015, agencies and other third party employers may no longer claim the overtime pay exemption for live-in domestic service workers."

"Workers who are covered under federal overtime pay protections must be paid at a rate not less than one and one-half times their regular rate of pay after 40 hours of work in a workweek".
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