In 2021, IPs will be transitioning to a “Consumer-Directed Employer” (CDE). DSHS has selected Consumer Direct of Washington (CDWA) to be the Consumer-Directed Employer. While consumers will still direct the daily tasks of IPs required by the CARE Plan, CDWA will replace the State of Washington as the legal employer for IPs. CDWA will onboard IPs, will follow the 2021-2023 collective bargaining agreement, bargain with the Union, administer programs such as unemployment and workers’ comp, issue paychecks, and implement an Electronic Visit Verification system. CDWA will replace IPOne as the payroll agent.
SEIU 775 will continue to communicate with IPs about the transition throughout 2021, including giving updates on specific timelines for the transition as we have them. At this point we believe the transition will occur in a couple different phases later in 2021. Look for more information from DSHS and CDWA as well; for now, you can go to this DSHS website for more information.
We are continuing to work with DSHS and CDWA to ensure that caregiver values and needs are met. SEIU 775’s Executive Board, which is our four full-time officers and 33 rank-and-file caregivers from across our Union, believes CDWA will meet the criteria we established for our support for any potential vendor. That means the vendor will:
- Maintain consumer direction
- Abide by the terms of our Union contract and continue to raise wages, benefits, and other working conditions for home care workers
- Give workers a voice in decision-making
- Improve on technical systems, including the payroll system
- Respect home care workers as professionals
- We are working with members of the State’s decision-making team and CDWA to make sure caregivers’ rights are respected and will let you know more when we know more. We will continue to monitor progress toward implementation in 2021 to ensure our principles are adhered to.
Frequently asked questions:
What is CDE?
Case workers are pulled in multiple directions and too often don’t have time to meet the needs of caregiver or clients. Caregivers are often confused about who to call and get passed from one place to another. Through CDE, the State will contract with a professional private entity to take over payroll and administration. This will simplify the system and create a single place to go for employment-related questions. It will free up caseworkers to address client needs and will professionalize and improve payroll and administration.
Who is the CDE vendor?
The State of Washington announced there will be one CDE vendor: Consumer Direct Washington (CDWA).
How did the State decide on the vendor?
DSHS had competitive bidding process to determine the Consumer Directed Employer. Two bidders completed the full bid, yet only one successfully completed the contracting process. The State has picked CDWA to be the CDE employer for Individual Providers.
What is the timeline for the transition to CDE?
The transition is set to happen in 2021, with a pilot phase, then a few different regions transitioning to CDE, then the whole state. We will update with specific timelines when we have them.
Will SEIU 775 become an employer?
SEIU 775 WILL NOT become an employer. The Consumer Directed Employer is a completely separate entity from SEIU 775. Our interest is making sure caregivers can continue to have a strong Union, the vendor is pro-worker and pro-Union, and Parent Providers, advocates for people with disabilities, and self-advocates are supported. SEIU 775 will continue to represent Individual Providers as their union and negotiate contracts with the Consumer Directed Employer.
Will we still have IPOne?
No. CDWA will replace IPOne as the payroll provider for IPs.
Does this impact taxes for IPs?
CDE will not impact the tax status of Individual Providers. IPs who qualify under the Difficulty of Care income exemption may continue to exclude income from federal income tax reporting. IPs who are currently exempt from FICA and FUTA will continue to be exempt.
What does this mean for overtime?
CDE will make some small improvements to overtime. The legislation that passed in Washington State kept the overtime limit at 65 hours/week (if the bill didn’t pass the limit would have gone down to 60), and it gives DSHS more flexibility to approve and create exceptions to the overtime limits.
Where can I find more information about CDE and CDWA?