Private caregiver compensation question.
My mom uses private caregivers from a company. Of course it’s very expensive. My best friend used the same company for her husband. He has since passed and the caregiver she was using left the company and works on her own now. The caregiver is super sweet. Anyway, now my friend is using this caregiver for her father a few hours a day. She is paying her $20 an hr. My mom is paying the company caregivers $27 an hour. I researched and found that the going rate for caregivers that don’t work for a company is between $16 and $18 an hour. My friend told me her caregiver needs more hours and if my mom would be interested. I was like heck yeah! Being that she worked for the same company my mom uses now, so she knows the protocol and has had the stringent background check etc..
My question is I’d like to use her and cut back on the company caregivers to save my mother some money, but I’d offer her $18 an hr. I know my friend is going to get upset with me. FYI my best friend received a multimillion inheritance when her husband passed and money is no object for her. She also leaves 50% tips everywhere she goes.
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I’m not getting involved in that bag of worms lawsuits
As far as noncompete agreement this caregiver quit working for the company 6 months ago. The caregiver never worked with my mom. Also, I can’t think of how the company would find out I’m using a former employee of theirs. My mom didn’t sign any contract. The caregivers are the ones that sign contracts.
https://www.agingcare.com/articles/hiring-in-home-caregiver-affects-taxes-171023.htm?utm_source=newsletter&utm_medium=email&utm_campaign=20230503&key=393778f0-abf5-4b9b-b261-9fc3031d5c29&mkt_tok=MzA1LVpYWi00NjYAAAGLgM0Mw7kLLj6cqBN0-_TzoYvi9hOq6pI7pr1iKSXqOnP8w48wWNPvgkdY4oFLqUOXGFeF6QHqLTtZ12Ub1Ub8CkEzbtx-2dp6VrXvt_TRpQ
It would also be a good idea to check Mom’s contract with the company to see if there is a penalty for hiring one of their employees directly. If I recall correctly, my Mom’s agency contract had a $5,000 fee if she did so. I assumed that it meant someone who had worked with her through the agency, but would have investigated further before risking incurring such a fee.
"Cheaping out' on your elder's care is tacky, IMHO. When I worked Elder Care ($9 an hour, and one raise after 18 months of .50 cents!!) My clients family found out how little I was making (not from me, IDK who told them) they went to the company and worked out a 'tipping' arrangement that was legal and subject to all withholding fees. I then made $15 an hour, which for the time wasn't great, but was definitely BETTER.
My gdaughter just got a job at In-N-Out burger and she makes $19 an hour, to start.
EVERYTHING is expensive these days. I get that you're trying to save money, but save it in a different way than basically telling this CG she's not worth what she was being paid at her other job.
You say that you know that your friend will get upset with you? Why would she be upset if she is the one who told you about this caregiver?
I applaud you for paying her the going rate. If you can afford to pay her a bit more to show your appreciation, I would. This would give her incentive to remain as your mom’s caregiver.
Best wishes to you and your mom.