PK Law 1099 to W-2 Reclassification Package

In May of 2024, Governor Moore signed into law The HomeCare Worker Rights Act of 2024. The law is designed to ensure home care workers are classified as employees rather than independent contractors. Starting January 1, 2026 (the law’s effective date) most of Maryland’s Medical home care programs may only reimburse for home care services if they are provided by a “W-2 employee.”  Currently many home care workers are classified as independent contractors. These workers do not get many of the benefits and protections provided to W-2 employees and employers are not responsible for submitting taxes related to their employment. Instead, employers issue a 1099 form to the workers/independent contractors and they are responsible for submitting their own state and federal taxes as required by law. 

Reclassifying an independent contractor to a W-2 employee involves ensuring compliance with state and federal laws before and after making the switch. PK Law’s 1099 to W-2 Reclassification Package is designed to offer tools and guidance with forms, education, and consultation time to complete the process. 

What The Plan Includes: 

Attorney Consultation Time: One hour of billable time to meet with a PK Law Employment Law Attorney to discuss worker reclassification status. After the meeting, the employer will receive a proposal for recommended additional legal work related to the employer’s current situation if needed.

Forms: Notice Letter, Employment Application, Offer Letter (Exempt and Non-Exempt), Employment Agreement, Benefits Notification Form, Arbitration and Non-Compete Agreement, Reclassification Rationale Form, and Employer Hire Date/Conversion Date Form, as applicable

Employee Handbook: Standard Employee Handbook based on number of employees

 

Educational Webinars:

• • Home Care Worker 1099 to W-2 Reclassification 101
  • Overview of State and Federal Employment Laws
  • Home Care Worker Wage & Hour Mistakes

What The Plan Costs: 

$2500 for MNCHA Member employers with less than 15 employees

$4000 for non-Member employers with less than 15 employees

$5000 for MNCHA Member employers with 15 or more employees

$6500 for non-Member employers with 15 or more employees

MNCHA Members also receive a 10% discount off the customary billable hourly rate for any additional reclassification related legal work.

Note: This offer is limited to one year – effective 5/1/2025 – 5/1/2026.

Interested in Learning More? 

Join PK Law and MNCHA for a nuts-and-bolts webinar on June 11, 2025 at noon to discuss how to decide if reclassification or selling is the right choice for you. They will cover what to expect and who to get involved based on the option you choose. (This webinar will be recorded and available after the June 11th live date.)

 

 

Paul Finamore, PK Law Labor and Employment Attorney will discuss:

• What to expect at your first meeting after purchasing the PK Law 1099 to W-2 Reclassification Package 
• Who from your agency should be involved in the reclassification process
• Additional professionals, beyond legal, you should consider adding to your team to assist with reclassification
• The reclassification timeline

Matthew Auman, HomeCentris Healthcare Founding Principal/CEO and MNCHA Board of Directors will discuss:

• Tips for owners on the reclassification process
• Benefits of reclassification
• Potential pitfalls after reclassification

Greg Weiner Corporate Healthcare M&A and Tax Attorney, PK Law will discuss:

• Who to contact [and who not to contact] if you are interested in selling your agency
• Tips for getting your agency in the best shape to sell
• The process of matching sellers with buyers
• The sale timeline