Is this unusual/illegal for a private duty nursing agency?

Specialties Private Duty

Published

Hello! I am a newly-licensed LVN in Southern California, and have started my first job at a small "Home Health" agency as a private duty nurse. Upon being hired at the home heath agency (which I will refer to as agency "A"), I was told by my boss (the owner of Agency "A") that I would have to tell my pts' families that I actually work for a different agency (which I will refer to as Agency "B"). So, basically, Agency "A" issues my paychecks, but my documentation and time cards are on Agency "B" forms, and I am supervised by RN's and case managers in Agency "B."

I don't feel comfortable lying to my patients families, and the subject came up the very first day, so I told them the truth and they reported this to Agency "B," who told Agency "A," and I was then gently reprimanded. This all seems so odd to me, and I don't know any nurses in real life that I can ask for advice on this matter so I am turning you all here!

Is this legal? Is this ethical? It feels very, very wrong to me...

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Something smells fishy here. If there were a legitimate "DBA" situation, then you would see evidence of it. I would quickly find another agency and become "unavailable", or outright resign if you feel your resume can stand it. You might want to contact an authority about this to find out if your employer is legitimate. There were two agencies in SoCal being run by a person, who along with others, recently went to prison, for millions of dollars of fraud. Maybe one of those agencies is one that you are dealing with. Sounds like these people have something to hide, and they want you to hide it for them. I would not stay there.

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Specializes in COS-C, Risk Management.

Interesting. I'm right now filling out an app for a second (third?) per-diem position and have just run across this. One of the forms says:

I, the undersigned applicant for employment, acknowledge by my signature that I have been informed that if hired, I will be a leased employee of *fillintheblank* Employee Leasing.

I'm not signing this until I hear more about it. Sounds odd.

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Interesting. I'm right now filling out an app for a second (third?) per-diem position and have just run across this. One of the forms says:

I'm not signing this until I hear more about it. Sounds odd.

This also sounds like a third party situation. All of these off the wall arrangements pose red flags to me. I have a hard enough time dealing with run of the mill employers. I'm not in any hurry to get involved with these schemes to get around labor laws, tax laws, or whatever their mode of operation is.

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Specializes in Pediatrics & luvin it.

No there is nothing wrong with what you are saying at least not on the surface. This is a common practice for businesses to do this as a tax write off.

Company "A" hires Company "B" to fill positions that Company "A" has available. Company "B" takes a write off for the employees that are filling Company "A"'s positions with. Then Company "A" takes a tax write off for the expenses from hiring Company "B". FYI usually Company "A" owns Company "B" to take advantage of a double tax break.

At least from your description this is what it sounds like they are doing and they just don't want the patients to know they are taking a double tax break. The last time I checked this was perfectly legal and is a tax loophole.

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Thank you! This is exactly what I needed to know. I don't like the lying, but I feel better working for them now.

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Specializes in Pediatrics & luvin it.

Your Welcome. Glad I could help you out. But I agree I don't like lying either.

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