We've been paying agency a daily referral fee for over a year now. Is there a way to end this or at least get it reduced? - AgingCare.com

We've been paying agency a daily referral fee for over a year now. Is there a way to end this or at least get it reduced?

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I 1099 the caregiver. I believe the agency carries workmanship comp on her. The rest seems to be profit. The caregiver actually reduced her income to stay with my mom, so we could extend her being in her home. Agency won't return my call. Any ideas?

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It looks like she has to be separated from us for a year. Otherwise lawsuit of $5k. Going to lawyer soon. May be time for different caregiving approach.
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I assume you are speaking of a recruitment type of agency? It seems some of these delight in robbing from their clients (by that I mean your caregiver) forever. The better ones would have charged you a one time fee, others will take a percentage of wages for a year. If you have been paying for over a year it is far too long. What does the contract say? You could always terminate her and then rehire her directly.
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Thank you for the feedback. Yes I pay her and 1099. The company did send her to my home. It's been over a year. My dad recently passed at home and our caregiver wishes to stay to be with mom (dementia) because she. Already knows her and wishes to retire after this job. The referral fee eats up our va benefit making it a mute point. We are seeing lawyer soon. Just looking for out of box solution.
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Right, clarification needed.

M88
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I assume she is referring to an agency employee that she hired directly and the agency contract spells out the terms of a referral fee in the event the employee is taken away from them and hired directly. You need to refer to the agreement you signed. Maybe hire an attorney. Or maybe hire a different caregiver. Technically you might be required to treat the caregiver as an employee and withhold payroll taxes. Better be sure that workers comp is being covered.
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Hi!
My guess is:
If you 1099 the caregiver, that'd mean she's an independent contractor. But the agency sends her to your home.
Who pays her?
Is she on the agency's payroll? Then you couldn't 1099 her.
I am not sure what to say.
Could you please clarify a bit more?
Appreciated,
M88
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