Most caregiver registry owners work hard to stay compliant, but some don’t realize they’re creeping into “agency territory.” And the tricky part? You can cross that line without changing a single client or independent contractor caregiver.
It’s often the little things, the way you schedule shifts, approve rates, or handle payments, that send the wrong signal to regulators. If those habits make it look like you’re controlling caregivers the way an agency would manage employees, you could be opening yourself up to risk.
Here’s how to spot the warning signs and keep your home care services registry firmly in the clear.
Why the Distinction Matters
On paper, the difference between a W2 employee and a 1099 independent contractor seems straightforward. In practice, the Department of Labor and the IRS care less about what’s written in a contract and more about how the relationship works day-to-day.
For a caregiver registry:
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Caregivers are independent contractors.
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Caregivers set their own rates, choose their clients, and control their schedules.
For an agency:
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Caregivers are employees.
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The business sets rates, assigns shifts, and manages the work.
If you’re a registry but your processes look more like an agency’s, you could face compliance issues, even if you’re not breaking any other rules.
Signs You Might Be Acting Like an Agency
These are common habits that can unintentionally blur the line:
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Setting fixed hourly rates instead of letting caregivers and clients agree directly.
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Assigning shifts and expecting caregivers to accept them.
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Managing work details (tasks, hours, location) as if you’re the employer.
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Using agency-focused scheduling tools rather than caregiver scheduling software designed for registries.
It’s not about avoiding organization, it’s about avoiding control. The more decisions you make for a caregiver, the more your registry starts to look like an employer.
How to Keep Your Registry Within Registry Best Practices
It comes down to designing your processes (and your registry software) so the independence of your caregivers is obvious.
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Let caregivers market themselves. Give them access to client requests but let them choose who to work with.
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Separate payment flow. Make sure the platform you use, whether it’s home care billing software or a home care scheduling app, keeps caregiver pay separate from registry revenue.
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Use scheduling tools correctly. Choose software that allows you to post available shifts without assigning them directly and lets caregivers set their own rates.
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Document without dictating. Store agreements in your system, but make sure they’re confirmed by both caregiver and client, not set by you.
Easy Fixes for Common Missteps
If you’ve been handling things in a more agency-like way, you can course-correct:
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Replace rate-setting policies with guidance and market ranges.
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Stop “auto-assigning” shifts; instead, notify caregivers of opportunities and let them accept or decline.
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Avoid making unilateral changes to caregiver schedules or pay agreements.
The Bottom Line
Running a home care services registry is about connection, not control. Your job is to facilitate introductions, make sure agreements are clear, and store records in a way that protects everyone - not to manage the work like an employer would.
Whether you log in through a home care scheduling app, a secure web portal, or basic cloud storage, the principle is the same: the software can hold the data, but the decisions belong to the caregiver and client.
