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House and industry witnesses warn changing home-care contractor exemption could strain rural caregiver supply
Summary
A bill to remove a blanket employment exemption for home-care caregivers prompted testimony that changing the classification could force caregivers out of the 1099 independent-contractor model, disproportionately affecting rural and low-income areas. Committee chair deferred a vote to allow further clarification and stakeholder meetings.
The committee heard extended testimony on legislation that would remove a statutory exemption treating many home-care workers as outside the state's employment definition and apply the independent-contractor test enacted in 2019.
Representatives of the Arkansas Home Based Services Association and Home Instead described the bill as leveling the playing field by treating comparable providers consistently; they asked that the independent-contractor test be applied across personal-care providers. Industry witnesses from smaller Arkansas-based providers (Allheart Senior Care, Superior Senior Care) opposed the change, saying a W-2 model would reduce caregiver supply and harm clients in rural and low-income areas where many caregivers are relatives or friends who prefer 1099 arrangements. Witnesses said electronic visit verification and other oversight mechanisms already provide accountability.
Senator Pinto said she would not call a vote that day and requested additional clarification and conversation with stakeholders; sponsor and opponents agreed to continue talks. The committee recorded the discussion and left the bill for further work rather than advancing it in that session.
