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My sister is a live in caregiver for a woman and is a non-family member. She is paid by personal check by the husband, he then makes a copy of the check and submits to his insurance company for reimbursement, but then makes my sister pay him $700.00 in rent. So, he gets rent from her then gets reimbursed from the insurance company. Is he able to do this? It seems like fraud to me, otherwise he would just write the check for her wages and submit that to his insurance.

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I don't think this has anything to do with your sister's rights - it doesn't really make any difference to her where the money comes from, if she agreed to this arrangement then she must have been satisfied with the pay she is making. Whether or not her employer is defrauding the insurance company is a separate issue, and I have a feeling they would be interested in this.
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