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6Beds, Inc. Grows Exponentially!

6BedsatCapitol

PHOTO TAKEN AT OCTOBER 29, 2014, LABOR RALLY AT CALIFORNIA STATE CAPITOL

Since its inception last July of this year, 6Beds membership swells to over 1,000 homes—comprised of over 6,000 beds! That’s an average growth of 250 homes per month.

Make the smart decision to join 6Beds.

With your membership, our collective voice grows louder and our political clout grows stronger in our fight to preserve our industry.

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Update on 6Beds Strategic Planning with Littler

10624680_635919256528712_1703010502499241025_n6Beds strategic planning with Littler started yesterday, November 19, 2014. Seven top lawyers, most with policy making expertise and professional experiences brainstormed to derive a solution to this complex labor issue that’s crippling our residential care industry. It’s a great start! The group also planned to set very high level meetings with labor decision makers on the federal and state level.

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NorCal 6Beds President, Janet Baena Valencia and County Leader, Gina Licup, Invite ARF and RCFE Multi-Facility Owners In Contra Costa County To Come Together

They too joined 6Beds!!! A similar membership drive also occurred in other parts of the State, including Central Valley (Fresno), where 11 homes joined. With new membership our voice gets louder, our clout gets bigger and our fight to save this industry gets stronger!

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6Beds, Inc., will be a Key Participant on December 2, DSS Meeting Regarding Changing Landscape of Residential Care

Newly appointed Deputy Director, Pamela Dickfoss of DSS, opens the previously closed doors of DSS to 6Beds, Inc.—a small homes advocacy group and the only RCFE and ARF stakeholder in DSS.

6Beds, Inc., will join DSS and other key organizations on December 2, to discuss and plan for the changing landscape of Assisted Living/Residential Care Facilities for the Elderly in California at the DSS Sacramento Office.

Pam Dickfoss oversees the activities of the Adult and Senior Care, Children’s Residential, and Child Care Programs, as well as the Technical Assistance and Policy, Continuing Care Contracts, Central Operations and Investigations Branches.

Ms. Dickfoss previously served as the Assistant Deputy Director at the Department of Public Health.

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6Beds meets with DSS Regional Managers Statewide

6Beds Founder and Director Gina Wasdyke,  and VP George Kutnerian met Regional Managers Wesley Beecham (of Northern California), Pam Gill (of EastBay Delta) and Stacey Ziegler (of Sierra Cascade) in Sacramento, November 14, 2014, at 11 AM. (No representative was available for the San Francisco Coastal Region since it is vacant.)

While at the same time, a similar meeting was also taking place in Woodland Hills where 6Beds Southern California President, Ron Simpson, Ines Otbo, Ofelia Aplicador and Elizabeth Hengstler met with Kit Chan (DSS Regional Manager for North Los Angeles and Central Coast).

Mary Jolls, Program Director of Statewide Adult and Senior Care, and 6Beds Director, Gina Wasdyke, spearheaded these meetings after 6Beds became the DSS Stakeholder on October 21, 2014.  Quarterly meetings will be scheduled on a regular basis between 6Beds leaders and DSS Regional Managers.  This is the beginning of partnership-building and collaboration on different projects and ongoing dialogue between licensees and DSS on how they can improve the system.

Both sides echoed the same goal for these meetings, and that is, to ensure safe and affordable care for California’s frail elderly and adults with developmental disabilities.  6Beds Founder Gina Wasdyke commented that this collaboration is long overdue.

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Wage Theft Allegations Challenged

Many residential care facilities are saying that the allegations of wage theft is questionable, as it may just be due to lack of understanding of how the residential care facilities operate especially with live-in caregivers. The live-in caregiver model in residential care facilities started in the 1970’s to promote continuity of care in a home-like setting.

This is a statement from the Labor Department, dating back to May 3, 1939, may be the key:

The Division has long recognized that the fact that an employee resides on the employer’s premises “does not mean that the employee is necessarily working 24 hours a day.” Wage and Hour Interpretive Bulletin No. 13 (May 3, 1939). The Division concluded in Interpretive Bulletin No. 13 that an employer may exclude payment for the extended periods of inactivity that occur when an employee resides on the premises, because the employee is generally able “to carry on a normal routine of living” during such periods. These principles are now set forth in the regulations at section 785.23.

(Source Wage and Hours: Dept. Of Labor)

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Moratorium from Labor Enforcement is what residential care facilities need now

In January 1988, the Department of Labor suspended its numerous compliance investigations of group homes around the country to develop a consistent enforcement policy resulting in a Moratorium.

On June 30, 1988, the Department promulgated an Enforcement Policy “refining and restating” the interpretations set forth in its earlier letter rulings. (Source: Dept. Of Labor)

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Let’s Talk Labor – DSS Stakeholder: What It Means (November 16)

Calling all RCFE and ARF care providers (owners) of
Sacramento and Neighboring Counties.

When: November 16 (Sun) @ 2 PM – 4 PM
Where: 9882 Cortino Way, Elk Grove CA 95757

Speaker: Gina Wasdyke, MBA
RCFE & ARF Provider & 6Beds Legislative Director

Topic: Let’s Talk Labor – DSS Stakeholder: What It Means

Official Flyer: 6BedsSacFlyer111614

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6Beds and Littler Strategic Planning on Labor & Employment Issues starts November 19

The 6Beds Team

Board of Directors
Gina Wasdyke, MBA – Founder (Sacramento)
Joy De La Torre, RN – Co-Founder (SF Bay Area)
Ron Simpson, MBA, PhD – President of Southern California Region
Janet Valencia, RN – President of Northern California Region

6Beds Lead Legislative Members
George Kutnerian, MBA (Central Valley)
Atty. Bruce Winstead (Southern California)
Atty. Maria Garfinkle (East Bay)

These 6Beds leaders represent a truly interdisciplinary group. Our group is comprised of attorneys, Ph.Ds, MBAs, nurses, and holders of other advanced degrees. While we are an interdisciplinary group from an educational standpoint, the common denominator is that we’re all top flight operators of RCFEs and ARFs who have a passion for taking care of the frail elderly and developmentally disabled.

We’re excited about what 6Beds and Littler can accomplish together!

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Employment Development Department (EDD) Audit

Some points to keep in mind as your prepare your EDD audit.

Gather your payroll records, EDD & IRS employment tax returns for the audit period they indicated in their letter.

The first question to ask your client is whether or not your client was incorporated during the period covered by the audit. The EDD preliminary audit notice will inform your client of the audit period and what quarters are involved. If your client was not incorporated, any resulting EDD status determination will be directly assessed against your client. He or she will be personally liable; a husband and wife will have joint and several liability.

A status audit is the most common type of EDD audit these days and involves the central issue of whether workers are employees or independent contractors. If your client was incorporated during the period covered by the audit, the corporation, as a separate entity will be liable. Your client will not be personally liable.

It will be up to the EDD, at some time in the future, to make the determination whether to issue an assessment against those individuals whom the EDD believes were “responsible persons”.

The second question to ask your client is whether or not quarterly EDD and IRS employment tax returns were filed during the audit period. This question is critical because it will determine just how far back the EDD and the IRS may examine books and records. We will discuss the IRS at a later time. Let’s focus on the EDD.

In the EDD code there is only one statute of limitations for assessment and it governs everything the EDD does. That section is California Unemployment Insurance Code Section 1132 (you can refer to this code as CUIC). Whether the EDD makes an assessment against your client as an individual, corporation, or both, it must do so within the language of this code section.

What are the statutes of limitations for assessment? Let’s start with the basic rule: If your client has filed quarterly EDD employment tax returns, the statute of limitations for assessment is anytime up to three years after the last day of the month following the close of the calendar quarter during which the contribution liability included in the assessment accrued or within three years after the deficient return was file, whichever was later. If your client has failed to file returns because all workers had been treated as independent contractors, including the owners of the corporation, the statute of limitations for assessment is anytime up to eight years after the last day of the month following the close of the calendar quarter during which the contribution liability included in the assessment accrued. This is an important difference between EDD and IRS rules. Under IRS rules, if no return is filed, there is no statute of limitations for examination. If the EDD suspects fraud, whether or not a return has been filed, there is no statute of limitations for assessment.

(Source: Martindale)