There’s No Magic in Venture-Backed Home Care – Kyle Hill – Medium: "From any angle, the W-2 model is not very attractive. The switch to W-2 would increase our caregiver onboarding costs by 10X. The additional costs of payroll taxes, overtime, paid sick leave, minimum wage regulations, benefits and health insurance, unemployment tax, workers comp insurance, and potential for lawsuits in a highly litigious industry put us in heavy handcuffs. We would also be forced to implement a 4-hour minimum and raise our prices by 32% — much closer to industry average.
This was the same model we had been publicly shaming for almost three years, but we really didn’t have any other choice. According to Federal law, these caregivers had to be employed by someone."
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