When a parent is cheating

Should You Report a Parent Who is Cheating?

By Tom Copeland. Posted with permission.

What should you do if you learn that one of the parents in your program is cheating?

A family child care provider recently contacted me about a parent who is receiving financial assistance from her state's child care subsidy program.

The provider had learned that this parent was lying about her income to the subsidy program.

If the subsidy program knew the truth, it's likely that the parent would no longer qualify, and therefore the parent would probably not be able to afford to continue receiving care from her.

She wanted to know, "Am I legally required to report the parent to the subsidy program?"

There is a legal and ethical dimension to this question.

Legal Issue

There is no federal law that requires family child care providers to report fraud in child care subsidy programs. However, your state subsidy program may require child care providers to report fraud. Check out the contract you signed with your state or county (if you signed one). If you are not sure of your legal responsibility, you could call your state subsidy office and find out. You wouldn't have to give your name when you called.

If you are required to report fraud, or suspected fraud, you should clearly do so as soon as possible.

But what if you aren't legally obligated to do so?

Ethical Dimension

In my opinion, family child care providers do have an ethical obligation to report fraud in the child care subsidy program, or any other program that affects their business.

This means you should report parents who are cheating the IRS as well as other providers who are breaking Food Program rules, child care licensing rules, or grant program rules.

If you don't know for sure that a parent or provider is cheating, I believe you should still report your reasonable suspicions.

Parents who are cheating the subsidy program are preventing other parents from participating on the program who do qualify for it. It's a misuse of our taxpayer dollars.

There is a difference between report to child care subsidy program and licensing rules: licensing rules are there to protect children, and if any provider breaking that rules it can create a danger situation for the children. All providers are mandated to report, and have to report this to the licensing agency. It is a legal obligation. Report a parent that is doing fraud to subsidy programs is a moral obligation, but also consider your safety when doing it.

It's ethically compromising to continue doing business with someone who is breaking the law. It creates an unhealthy relationship that may lead you later to express resentment against the parent or child.

I don't think you should continue to provide care for a cheating parent because you don't want to lose the income if you lose the family, or because you believe you can provide better care for the child that someone else.

Imagine how you would feel if you failed to report the parent and later the parent was exposed. If you are asked by the subsidy program if you knew about it, you are faced with either lying or telling the truth and being embarrased at the very least. It's possible your failure to report the fraud could prevent you from being able to care for other subsidized families.

Do the right thing. Let your conscience be your guide.

What do you think?

www.tomcopelandbog.com

A lawyer speaks about your licensor.

A Lawyer Speaks About How to Reduce Conflicts with Your Licensor

By Tom Copeland. Published with his permission.

“How can a family child care provider improve communications with her licensor?”

“How can a provider avoid making mistakes that can get her into trouble?”

“When should she hire an attorney?”

These were some of the questions I asked Minneapolis attorney Scott Johnson today over lunch.

In the last five years Scott has helped dozens of family child care providers appeal negative licensing actions.

He works for the law firm of Goetz & Eckland, P.A that also defends providers in criminal cases (child abuse, etc.). He can be reached at 612-874-1552; sjohnson@goetzeckland.com.

Over the years I have heard from many providers who have had trouble with their licensor. “She’s out to get me!” is a common complaint. I wanted to know what advice a lawyer would give providers to help reduce conflicts and improve the chances of winning an appeal.

Scott described four areas where providers can help themselves.

Maintain Clear Lines of Communication

Make sure you maintain a clear line of communication with your licensor. You want a professional relationship where you can talk things over. Although you may have negative feelings about your licensor, it’s important to get past these feelings and do your best to work cooperatively.

Keep documentation of interactions with your licensor. Immediately after a licensor visits your home, write up a summary of your conversation.

“Licensor visited my home between 2pm and 3pm on October 9th. We talked about safety issues. She said I should not keep adult scissors on the dining room table, but it was okay to store them on top of my refrigerator. She also said I could use a ‘time out’ to discipline a two year old. After inspecting all the rooms in my home and my backyard she didn’t indicate I had violated any licensing rules.”

Email or mail a copy of your notes to the licensor and add, “Here are my notes of your visit to my home on October 9th. If you believe that I have not accurately described our meeting, please let me know what I have written that is not correct. Also, let me know if I have left out anything important.” Such record keeping can help you if the licensor later states something that is different than your notes.

When possible, communicate with your licensor via email or mail, not by phone. When you talk on the phone, the licensor is at an advantage because she is likely to write up notes of your conversation immediately after it’s over. You are much less likely to keep similar notes. Copies of emails or letters are more useful as written records in your defense.

Tell the Whole Truth

Providers sometimes get into trouble because they don’t initially own up to what happened or they don’t fully explain the circumstances to their licensor. Doing this will cause a loss of trust that can get you into more trouble.

In one case a provider told her licensor that there were six children in her care, when in fact there were seven. A parent dropped off the seventh child early and thus the provider was over enrolled for a few minutes. When the licensor asked the other children who was in the home, they revealed to her the presence of the seventh child.

In another case a child wandered out of the back yard of a provider and a licensor investigated the incident. The provider told the licensor she was outside with the children, and when she turned her head away for a moment the child was gone. In fact, the provider was in the bathroom at the time. The licensor found this out by talking to the other children.

It’s better to tell the whole truth up front. In the above cases the provider is still in violation of the rules and is likely to be cited. But the provider will lose the licensor’s trust if she finds out later that the provider lied. She may become more suspicious and wonder when else the provider has lied. As a result, she is less likely to take the provider’s word in the future. It’s always better to be honest up front and not let the truth dribble out over time.

Avoid These Mistakes

There are many licensing rules and while some of them may seem minor or petty, (particularly those dealing with paperwork) licensors are trained to enforce them all. By violating even minor rules you can undermine your relationship with your licensor. By following all the rules you can help avoid trouble.

Providers who enter into new personal relationships should be aware that the past history of this person could affect your livelihood. Background checks will uncover past problems (drug use, drunk driving record, etc.) that can result in your boyfriend not being permitted to be around the children, even if you don’t live together.

This can be a problem because a licensor may not believe you when you say that your boyfriend will never come over when children are present. Licensors may look for an extra car in your driveway or adult clothing that is not yours. Because they might not believe your assurances, you could lose your license.

Be careful what you put on Facebook. One provider posted a negative comment about a child to her private “friends.” One of these friends copied what she had posted and turned it over to her licensor with the result that the provider got into trouble. Even writing notes about your feelings in emails (“I feel so frustrated today with the children” or “I don’t know what I’m going to do about this child”) could be interpreted by your licensor as a sign that it might not be safe for you to be around children.

Get Legal Help

Some business liability insurance companies (Assure Child Care, West Bend, DCI, Freisinger, and others) include coverage for legal assistance when you are confronted with negative licensing actions. Usually such coverage is for a small amount of money ($2,500- $5,000). But even a small amount of money can help when you need a lawyer. Ask your insurance agent if your policy has such coverage. See listings of companies on my insurance directory.

When you should seek out legal help? If you get a correction order from your licensor that involves a small consequence (fine, requirement to take a training class) you probably don’t need a lawyer. There is little a lawyer can do in this situation. However, if your licensor is taking action to suspend or revoke your license you should definitely seek out a lawyer.

Also, see my article, "How to Find a Lawyer When You Need One."

Tom Copeland - www.tomcopelandblog.com

Image credit: www.talkingdrugs.org

For more information about how to maintain a positive relationship with your licensor, see my book Family Child Care Legal and Insurance Guide.

Get to know the child care rules (the standards). Read it, underline important points, review it, and return to read it. Every time you reread, you’ll find something that had been overlooked. Always obey and to show that is fulfilling. Some rules may seem excessive. Never mind, observe its strictly. The rules not only protect children, protect you also. At any time, your licensor can come to your home and observe a rule that is not enforced. Or a customer can report any non-compliance rule. Know the rules to the point that you can quote them, and even discuss it with your licensor. If there is a rule that is not clear, ask your licensor until you understand it clearly.

Check also the advice we give for when a parent leaves his child care discontent, or when you think a customer can report you

Radon test

Radon test
 

Radon is a radioactive gas, not seen, not smell, it accumulates in the lower parts of the houses because it is heavier than air. When there is too much, it can cause cancer of the throat or lungs. DCFS requests that all providers that are going to get or renew your license after January 1, 2014, have a radon test.

For this:

1. Buy a test. Walmart has one for $ 19.00 Pro-Lab RA100 Do-it-yourself radon gas test kit, very complete, the box comes with two detectors. ACE and MENARD have also tests for sale. When you buy it, apart from price, you will have to pay between 30 and 50 dollards for analyze the results.

2. Follow the instructions that come with the test, they are very easy. Basically is to have it exposed some time at home.

3. Send it to the laboratory, and in a week, they send you your results.

4. Put the results together with your license. If you have very high concentrations, which are dangerous, you must do something to reduce them, this is for your own safety, but DCFS does not require to do anything.

Angel Olmedo

Family Child Care Homes Program Coordinator

Coordinador del programa de Casas de Cuidado Infantil

1103 Greenwood Ave

Waukegan IL 60087

773-867-7387

“Helping Chicagoland’s At-Risk Children and Their Families Build, Sustain, and Achieve Better Lives.”

Affordable care act and family child care.

How the Affordable Care Act (Obamacare) Will Affect Family Child Care

By Tom Copeland. Published with his permission.

 

October 1, 2013 is the start of a new phase of the Affordable Care Act (ACA), otherwise known as Obamacare that was first passed in 2010.

 

Starting today, family child care providers without health insurance can sign up to purchase insurance through their state health care exchanges. 

 

This signup period will continue until March 31, 2014. Insurance coverage will begin on January 1, 2014.

 

Those Not Affected
If you are already covered by health insurance through your spouse’s employer, or you are currently on Medicare or Medicaid, you do not have to do anything. You will keep your current insurance coverage and do not have to sign up to purchase different health insurance.

As an Employer
If you hire employees to help you with your business you are not required to purchase health insurance for them. Only employers who have more than 50 full time employees will be required to purchase health insurance by 2014, or pay a penalty. Therefore, there continues to be no requirement that you offer health insurance to your employees.

You can choose to offer health insurance to your employees if you want. If you do, there are some federal tax credits that can help make this more affordable. In 2013 there is a 35% tax credit if you pay more than half the cost of health insurance premiums for your employees. In 2014 this will rise to a 50% tax credit. The cost of premiums not covered by the credit continue to be a 100% business deduction. You must have two full-time employees to take advantage of this credit. Unfortunately, you cannot hire your spouse or own child and claim this tax credit.

As a Consumer
Health insurance has become increasingly difficult to afford for many family child care providers who are single or not covered by their spouse's health insurance plan. Starting today you can shop for more affordable health insurance coverage for your family (and your employees) through state-run insurane exchanges.

To learn all of the details of the ACA and to find the contact information for your state's health care exchance, go to www.healthcare.gov (CuidadoDeSalud.gov). Or call 1-800-318-2596, 24 hours a day with your questions.

Under the ACA, these state exchanges will not offer health insurance but will rather offer a one-stop shop for health insurance plans offered by private insurance companies. This will make it much easier to compare benefits and prices.

Insurance companies will not be able to refuse to insure you because of your health history and cannot cancel your insurance. Insurance companies can no longer charge women more for the same insurance. All policies cover pregnancy and childbirth as well as dental and vision coverage for children. 

 

Insurance policies being sold will come in four levels: platinum, gold, silver and bronze. The major difference between them is the cost per month and how much you will pay for deductibles and copays.

Low-income individuals and families will be eligible for subsidies that will reduce the cost of your monthly premiums. The amount of your subsidy, or tax credit, will depend on your family size and income. There is also a tax credit to help pay for deductibles. In addition, for very low income families the ACA law expands coverage for Medicaid in many states (those earning less than $31,000 for a family of four).

If you are single you can get a subsidy if you earn less than $45,960; family of two $62,040; family of three $78,120; family of four $94,200. These amounts are for 2013 and are likely to rise by 2014. For details, see your state’s health care exchange website. For more information about these subsidies and deductibles see the helpful information posted on www.healthcare.gov.

 

Understanding the details about the cost of insurance policies available to you can, at first, seem daunting. Each state has private insurance companies offering their own policies with their own prices. To find out what choices you have, go to your state's website, enter the information about how many are in your family and your family income.

Beginning in 2014, if you are not low income, you will be required to either purchase health insurance or pay a small penalty. The annual penalty (tax) is $95 for an adult and $47.50 for a child, or up to 1% of your income (whichever is greater). This will rise to $695, or 2.5% of income by 2016. This is the individual tax; families have a tax of $2,085 or 2.5% of income whichever is greater. There are currently no rules that allow the IRS to enforce this tax.

Bottom Line
If you have health insurance that you want to keep, the ACA will not force you to change policies. The fear of losing health insurance or being unable to pay medical bills has haunted many family child care providers for years. ACA will make major changes in how we buy health insurance. It will become easier to get health insurance, the insurance will cover more and in the long run cost less than if the law did not exist.

 

What questions do you have about the ACA?

 

Tom Copeland - www.tomcopelandblog.com

Image credit: www.coursera.org