I have partially solved this problem, however having some trouble with the back button, check here to see if it gets resolved.
create the service as normal but add these flags to the overlay:
to the window manager:
TYPE_PRIORITY_PHONE, FLAG_FULLSCREEN | FLAG_NOT_TOUCH_MODAL
to the view:
int uiOptions = View.SYSTEM_UI_FLAG_FULLSCREEN;
FloatingView.setSystemUiVisibility(uiOptions);
Android floating window with hidden statusbar Accessibility problems