Press Release

Advocacy, Press

6 Bed Care Home Providers Are Losing $73,000 For Each Employee per Year

The U.S. Dept. of Labor requires care home providers to pay their staff for an entire 24hrs/day if they are living in the care home (even after their 8-hour shift is finished).  If no exceptions are granted and this requirement is enforced, then DOL expects care home providers to pay each worker on their staff:

$78,840 in annual wages ($9.00/hr minimum wage x 24/day x 365days/yr)

Yet for all SSI/SSP residents, the state and federal governments compensate providers only:

$6,264 in annual funds for wages ($522/mo x 12mo)

That means providers lose:

$72,576 annually for each staff member ($78,840 required- $6,264 provided)

Advocacy, Press

SSI’s 72 Cents Makes No Sense

SSI/SSP Cash Grants for Low-Income Elderly & Disabled Californians Result in $0.72/hour Wages for their Residential Caregivers

You do the math:
$1,145 monthly govt. SSI/SSP paid to Care Home for each Resident ($733 Federal SSI + $412 CA SSP)

From the $1,145:
$131 goes to Resident for personal & incidental needs
$492 goes to Care Home for housing, meals, utilities, toiletries
$522 goes to Care Home for 24×7 staff wages, taxes, insurance

$522 monthly staff wage is equal to:
$6,264 yearly wage ($522/mo x 12mo) or
$17.16 daily wage ($6,264/yr / 365 days/yr) or
$0.72 hourly wage ($17.16/day / 24hrs/day care & supervision)

Advocacy, Press

Hundreds of Asian Pacific Islander Minority Women Rally to Protest Unreasonable Labor Law Enforcement, Forcing Bay Area Homes for Elderly and Disabled Adult Residents to Close

Aggressive Policing Tactics Seen as Outrage in Raids of Homes Residential Care Providers Contend They’re Being Treated like Second Class Citizens and Outright Criminals

(San Francisco, CA) – Hundreds of 6-bed small care home providers joined with their loyal caregivers and ailing and frail residents and families to press their case against the U.S. Department of Labor in San Francisco. They claim they have been vilified and victimized by federal agents who are busting into their homes, threatening caregivers to turn in their employers for back wages and ordering these mostly Filipino women care providers to pay millions of dollars for lost wages or be sent to jail.

The owners of these small 6-bed care homes are aggressively fighting back to save these neighborhood care homes to keep their low-income residents from being displaced or institutionalized, despite hundreds of these California facilities having already been shut down or gone into bankruptcy. The care providers claim absurdly low government subsidies they receive for the care of a sizeable population of low-income elders and adults on government aid are capped, making it impossible for them to pay their live-in employees minimum wage required over a 24-hour period, 7 days a week. When all is said and done, the compensation they receive for the care of a resident on State Supplemental Income/State Supplementary Payment (SSI/SSP) amounts to just 72 cents an hour!

Under these restrictive federal and state mandates, providers are losing $73,000 per staff member each year. Meanwhile, overzealous government labor enforcers contend that this round-the-clock pay must be given to workers even when the lights are out and everyone is asleep; even when 6-bed caretakers prefer to receive daily 8-hour pay supplemented by fully paid lodging, meals, transportation, insurance coverage and other benefits.

“Many of us women, minority small home care owners rose from poverty and have been quietly contributing to the economy by providing for the most vulnerable and frail in our society at government compensation rates well below minimum wage,” said Janet Baena V., 6Beds, Inc. Northern California President. 6Beds, Inc. represents about 1,100 small home care facilities throughout California that have been providing an extended family home environment for the past 40 years to the needy, developmentally disabled and dependent elderly.

She added: “We treat each other like family living in the same household. And our caregivers are more than happy to have a roof over their heads and their living expenses fully paid by us along with daily wages, workers comp, taxes, Internet service and utilities. It takes 6 or more workers to cover all the shifts depending on our residents’ needs, one during the day, one at night or often two at the same time to watch six residents, along with weekend relievers and substitutes. But the government requires that we pay our regular staff 16 additional hours over their 8-hour shifts just because they’re living there. You do the math and tell us if we can afford to stay in business. The answer is NO!

The stark reality is the California residential home care industry that compassionately provides for developmentally disabled adults and seniors with dementia is on the verge of collapse. Yet instead of working with providers to find a solution to keep them afloat during these trying times, 6Beds, Inc. advocates say government labor zealots are raiding their homes, coercing caregivers to say things against their employers by enticing them with rewards of getting millions in back pay, seizing homes in nice neighborhoods with lots of equity and accusing care home owners of wage theft and tax evasion. These government raiders threaten minority women providers operating in the red due to the impossible demands placed on them to either pay up or be jailed. The providers have no recourse and are convicted with criminal penalties on their records, ruining their reputations and ability to find other employment.

Examples abound in many Bay Area communities of high-priced homes that have been seized and residents displaced:

  • Cynthia, a former auditor who owns four care homes in the Bay Area recently was hit with a $900,000 penalty, despite her best efforts to comply with the labor laws with proof of timesheets, paystubs, workers comp and payroll tax receipts. Now, she can’t sleep at night and cries because she feels helpless. She thinks the equity in her home made her a prime target.
  • Lucy, an 83-year-old, owned a well-run care facility for more than 20 years in San Francisco. She was tending to her ailing husband when labor auditors came to her door and fined her $600,000. With her husband sick during the time of the audit, Lucy was afraid and was forced to settle. She sold her primary residence, and her care home to scrape up barely enough money to pay the huge fines with the equity she had in her homes.
  • Kelly and her husband were slapped with over $1 million in penalties by federal labor auditors. The couple settled but Kelly’s husband could not handle the stress and died of a stroke just three weeks ago at the age of 61. Wasting no time, state labor auditors came knocking at her door, demanding a half a million dollars from the grieving widow. Kelly, on the brink of bankruptcy and alone, said the state enforcers threatened her with jail time if she did not settle.

“The government is trying to pit us against the loving caregivers we’ve embraced as family when the real defendant who should be on trial is the government,” said Baena V. “Our ability to comply with the labor laws depends on our residents’ ability to pay. How do we give something we DO NOT HAVE? State and federal labor departments demand 24 hours paid work for each caregiver. Shouldn’t it stand to reason that the government should be funding those 24 hours to providers of SSI/SSP recipients, who depend on government aid as their only source of income to care for these residents?”

“6Beds, Inc. supports compliance with the labor laws while at the same time, seeks a moratorium on the ongoing harsh labor audits until we can achieve an economic model that our low income residents can afford,” stated Ron Simpson, 6Beds, Inc. Southern California President.

“But until then, why uphold a labor law that the government can’t even comply with and then convict the citizen who is running a business the best she can. You, the Great State of California, are GUILTY of whatever the Department of Labor has coined ‘wage theft’ and ‘wage fraud.’ We may be small in size but we are strong in our resolve to fight this huge injustice and outright violation of our constitutional rights.”

Advocacy, All Posts, Press

Hundreds of California Small Home Care Facilities Warn of Closures in 60 Days, Potentially Leaving Thousands of Low-Income Residents Homeless and Thousands of Caregivers Jobless

State Blamed for Refusing to Recognize their Value by Drastically Underfunding their Services and Treating Residential Care Providers like Second Class Citizens and Outright Criminals

(Sacramento, CA) – 72 Cents Makes No Sense became the rallying cry today at the State Capitol as providers, family members and caretakers asked legislators: Isn’t the care of our frail elderly and disabled adults worth more than 72 cents an hour? That’s the meager pay 6-bed home care providers receive for taking care of low-income elderly and adult residents on Supplemental Security Income/State Supplementary Payment (SSI/SSP).

The 72 cents is the compensation given to 6-bed providers because inadequate state subsidies are capped well below the amount needed to pay caregivers over a 24-hour period, 7 days a week. Under federal and state mandates, providers are losing $73,000 per staff member each year. Meanwhile, overzealous government labor enforcers contend that this round-the-clock pay must be given to workers even when the lights are out and everyone is asleep; even when 6-bed caretakers prefer to receive daily 8-hour pay supplemented by fully paid lodging, meals, transportation, insurance coverage and other benefits.

“Many of us women, minority small home care owners rose from poverty and have been quietly contributing to the economy by providing for the most vulnerable and frail in our society at government compensation rates well below minimum wage,” said Janet Baena V., 6Beds, Inc. Northern California President. 6Beds, Inc. represents about 1,100 small home care facilities throughout California that have been providing an extended family home environment for the past 40 years to the needy, developmentally disabled and dependent elderly.

She added: “We treat each other like family living in the same household. And our caregivers are more than happy to have a roof over their heads and their living expenses fully paid by us along with daily wages, workers comp, taxes, Internet service and utilities. It takes 6 or more workers to cover all the shifts depending on our residents’ needs, one during the day, one at night and two often at the same time to watch six residents, along with weekend relievers and substitutes. But the government requires that we pay our regular staff 16 additional hours over their 8-hour shifts just because they’re living there. You do the math and tell us if we can afford to stay in business. And the answer is NO!”

The stark reality is the California residential home care industry that compassionately provides for developmentally disabled adults and seniors with dementia is on the verge of collapse. Yet instead of working with providers to find a solution to keep them afloat during these trying times, 6Beds, Inc. advocates say government labor zealots are raiding their homes, coercing caregivers to say things against their employers with rewards of getting millions in back pay, seizing homes in nice neighborhoods with lots of equity and accusing care home owners of wage theft and tax evasion. These out-of-control government raiders threaten minority women providers operating in the red due to the impossible demands placed on them to either pay up or be jailed. The providers have no recourse and are convicted with criminal penalties on their records, ruining their reputations and ability to find other employment.

Examples abound in many communities throughout California, some relayed at today’s rally:

  • Cynthia, a former auditor who owns four care homes in the Bay Area recently was hit with a $900,000 penalty, despite her best efforts to comply with the labor laws with proof of timesheets, paystubs, workers comp and payroll tax receipts. Now, she can’t sleep at night and cries because she feels helpless. She thinks the equity in her home made her a prime target.
  • Lucy, an 83-year-old, owned a well-run care facility for more than 20 years in San Francisco. She was tending to her ailing husband when labor auditors came to her door and fined her $600,000. With her husband sick during the time of the audit, Lucy was afraid and was forced to settle. She sold her primary residence, and her care home to scrape up barely enough money to pay the huge fines with the equity she had in her homes.
  • Kelly and her husband were slapped with over $1 million in penalties by federal labor auditors. The couple settled but Kelly’s husband could not handle the stress and died of a stroke just three weeks ago at the age of 61. Wasting no time, state labor auditors came knocking at her door, demanding a half a million dollars from the grieving widow. Kelly, on the brink of bankruptcy and alone, said the state enforcers threatened her with jail time if she did not settle.

“The government is trying to pit us against the loving caregivers we’ve embraced as family when the real defendant who should be on trial is the government,” said Baena V. “Our ability to comply with the labor laws depends on our residents’ ability to pay. How do we give something we DO NOT HAVE? State and federal labor departments demand 24 hours paid work for each caregiver. Shouldn’t it stand to reason that the government should be funding those 24 hours to providers of SSI/SSP recipients, who depend on government aid as their only source of income to care for these residents?”

“6Beds, Inc. supports compliance with the labor laws while at the same time, seeks a moratorium on the ongoing harsh labor audits until we can achieve an economic model that our low income residents can afford,” stated Ron Simpson, 6Beds, Inc. Southern California President.

“But until then, why uphold a labor law that the government can’t even comply with and then convict the citizen who is running a business the best she can. You, the Great State of California, are GUILTY of whatever the Department of Labor has coined ‘wage theft’ and ‘wage fraud.’ We may be small in size but we are strong in our resolve to fight this huge injustice and outright violation of our constitutional rights.”

17 March 2015 – State Capitol Rally Photos


All Posts, Press

6Beds, Inc. Issues Statement on Recent Fines by Department of Labor

FORM IMMEDIATE RELEASE: November 4, 2014
CONTACT: Beth Miller/Brooke Armour (916) 551-1383

Encourages ongoing discussions with department to ensure compliance with law

(SACRAMENTO)—The California Department of Labor last week announced more than $3 million in citations for assisted living providers, including those who operate small home facilities with six or fewer residents. 6Beds, Inc., the advocacy group representing small home residential care facilities, has been working with the Department of Labor to discuss new enforcement of laws and regulations that are making well-intentioned care providers the target of these labor violations.

6Beds, Inc. Director Joy DeLa Torre issued the following statement in response to this latest action by the department:

We strongly condemn any facility that intentionally attempts to subvert the law or under-pay its employees. But in many cases, the application of certain laws and regulations to small home residential care facilities is creating confusion for our community. For example, many small home facilities have live-in caregivers who do not have regular access to transportation and live
at the homes on a long-term basis.

6Beds, Inc. has been proactively meeting with the California Department of Labor to explain the unique operational characteristics of our small home facilities and why the Department’s recent actions disproportionately affect our small homes. Specifically, we are working to clarify how to accurately classify the hours of live-in employees to ensure we are providing just compensation while taking into consideration the unique characteristics of both the small home facilities and its live-in caregivers.

We respect our employees and always want to make sure we are providing them fair compensation for the excellent service they give our residents. We are working with the Department of Labor to create clear understanding of labor requirements, acceptable labor practices for live-in caregivers and proper documentation. We want to create consistency in order to educate our members so we can avoid these types of raids, which are affecting our ability to provide safe and affordable care for seniors and intellectually disabled adults.

All Posts, Press

6Beds, Inc. Responds to Recent News Story About Wage Fraud

FORM IMMEDIATE RELEASE: September 22, 2014
CONTACT: Beth Miller/Brooke Armour (916) 551-1383

Residential care advocacy group strongly condemns recently alleged labor law violations

(SACRAMENTO)—Joy DeLa Torre, Chairwoman of the Board of Directors of 6Beds, Inc., a senior and adult residential care advocacy group, today issued the following statement after reports that some facilities were allegedly engaging in wage fraud, including paying some workers less than $4 per hour:

The Board of Directors of 6Beds, Inc., our members and the entire small residential care community are shocked by the news of alleged wage fraud. Any bad actors in our industry taint our reputation and the dedicated work we are doing to care for those who cannot care for themselves.

6Beds Inc. does not condone any illegal activity. That’s why as an association of residential care facilities we are committed to reaching out and ensuring all members of our care community are aware of, understand and comply with all laws and regulations. We will be working with our state oversight agencies to ensure all our members are educated and in compliance so that they can remain focused on the work they do – providing quality care to countless California seniors and adults in need.