Monday, January 23, 2012

CareLinx Offers Cost-Effective Alternative to Proposed Labor Department Caregiver Pay Standards

SAN FRANCISCO - Modifications to the Fair Labor Standards Act (FLSA) called the “companionship exemption”proposed by the U.S. Department of Labor’s Wage and Hour Division (WHD) and backed by President Obama’s Administration, would provide changes in pay standards for home care and home health workers employed by traditional agencies.

This initiative is good news for home-based caregivers who would be compensated for all time worked, be required to work within 8-hour shifts, and eliminate 24-hour live-in care that involves a single caregiver staying overnight.

The bad news for senior adults and their families, according to CareLinx Inc President and CEO Sherwin Sheik, is “the cost of these much needed services through home care and home health care provider companies will increase significantly to cover their labor expenses.”

“There is no question that caregivers should be fairly compensated for their services, but this proposed exemption will have a large negative impact to the affordability of care through structured home care company business models,” Sherwin stated.

Sherwin noted, “The CareLinx model continues to help alleviate some of the financial stress for seniors that is associated with home care services. Our main objective is to give families and caregivers all the tools they need to directly connect and manage services online through our safe, secure and efficient online platform. Should this amendment proposed by the Labor Department be implemented, we envision more caregivers and families gravitating toward our website.” 

According to a post by Laurie Edwards-Tate for Communities at WashingtonTimes.comModifying the exemption will have unintended consequences. In 29 states, including California, an agency will employ a live-in caregiver for a 24-hour shift. If the overtime exemption is eliminated, the agency will staff this case with three workers in eight-hour shifts instead. The workers’ pay will drop and the client will lose continuity of care and the safety it provides with three workers rather than one.”

But unlike a home care agency that employs caregivers, CareLinx lists caregiver profiles while families select and directly hire caregivers that match their needs on multiple dimensions of compatibility. The company’s website enables caregivers to set their own rate of pay and work the hours they prefer, including 24-hour live-in arrangements. As subscribers to the free web-based service, families and patients select caregivers based on detailed profiles, criminal background checks, work schedules and hourly rates.

According to Sherwin, “Carelinx reduces the administrative costs associated with managing home care services so as to help reduce the markup that home care agencies charge seniors and their families, which in some cases can be as high as 50%. By reducing administrative costs, CareLinx provides caregivers the ability to earn more, while also helping reduce the overall cost of care for families.”

For more information about CareLinx Inc please visit our website at, e-mail us at, or call (415) 743-0602.


1 comment:

  1. Thanks a lot for sharing such an detailed and informative post. The reading was definitely worth it.