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Parent's Caregiver (from A Company) Works 12hrs Day/7 Days A Week And Isn't Paid Overtime. Is This Illegal? (california)

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My elderly parent has had a wonderful caregiver, Tracy (not real name) for a year and a half. Tracy was hired via a caregiving agency based in California. Tracy works 12 hours a day, 7 days a week (84 hours a week) which is her choice. She can choose the number of hours she wants to work and likes working with my parent and also needs the money that she earns from working this many hours. However, she is not paid overtime. We, as the client, pay the agency $39/hour. They pay Tracy $23/hr without overtime pay except for holidays. From my understanding, if she's working over 45 hours a week, she should be paid overtime (x1.5).

We'd love to be able to hire Tracy outright and pay her what she deserves and offer her health insurance, but we signed a contract with the company to NOT hire her outright for 12 months after termination of the services. Because they are not paying her the legal amount for her work, can we get out of this contract?

Here's the section of the contract that concerns me, "DURING ENTIRE CONTRACT AGREEMENT AND TWELVE MONTHS THEREAFTER. Independent Hiring of Referral. Client understands and agrees that there are considerable costs and expenses incurred by [caregiving company], to market for, hire, DOJ background check. Client further agrees that hiring of a Caregiver associated with [name of caregiving company] would cause excessive financial damages and reputable costs to [name of caregiving company]. Therefore, the parties agree that during the Term of this Agreement, and for twelve (12) months after termination, Client shall not directly or indirectly hire a Caregiver referred by [caregiving company], in violation of the terms of this Agreement, [company] will be provided six months severence pay for each violation of this Paragraph 9, upon Organization demand, which the parties agree are liquidated damages and a fair and reasonable approximation of Organization’s damages and not as a penalty."

submitted by /u/caregiver_conundrum
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