New Home Care Employee Dishonesty Bond Required in California
As of January 1, 2016, California home care organizations will have to comply with a new piece of legislation to ensure their employees will not engage in fraudulent activities against their clients. They will need to obtain a $10,000 employee dishonesty bond, along with a list of other requirements, so that they are compliant with state rules.
The change is introduced with the Home Care Services Consumer Protection Act (HCSCPA), signed back in 2013 but coming into force only next year.
Reasoning for the new rules
The stricter rules for the home care industry in the state come as a reaction to a California Senate Committee on Health study conducted back in 2011. It revealed numerous cases of home care aides neglecting or mistreating the elderly and disabled people who were in their care.
Home care employees previously did not need to undergo any background check. Plus, home care agencies were not always required to get any licensing besides a business license.
The introduction of the HCSCPA is bound to bring a higher level of safety and better services for people in need of home care, thus raising the standards of the industry.
What does the HCSCPA entail
Besides introducing the requirement to post an employee dishonesty bond, there are a number of other rules that home care organizations need to comply with.
All home care aides need to undergo a background check, as well as a special series of trainings. A variety of other rules regulate who can become an aide, which can be consulted in the text of the Bill.
As for home care organizations, as of next year, they will have to get licensed before operating in California. As a part of their operating requirements, they will have to ensure they meet a number of criteria, including posting the employee dishonesty bond and at least $1,000,000 general and professional liability insurance per occurrence and $3,000,000 in total.
What are employee dishonesty bonds
Employee dishonesty bonds are a type of fidelity bonds, which resemble insurance in the way that they protect the principal of the bond. As such, they function as a guarantee for the employer and the clients that the employee will not commit theft, forgery or other fraudulent activities while at the job.
In the case of home care organizations, employee dishonesty bonds protect the agency from dishonest acts of home care aides. In this way, the organizations can guarantee the safety of their clients and have increased attention to their employees’ conduct.
If you have any questions regarding the new home care employee dishonesty bond requirement in California, or need help with your bond application, don’t hesitate to call us at 866.450.3412. You will get expert assistance from Bryant Surety Bonds’ specialists.