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Thursday, November 30, 2023

The Long-Term Healthcare Market Deals With New, Intense USDOL Analysis: Make Certain You Are FLSA Compliant!

I have actually safeguarded lots of assisted living home, house health services, property care centers and other healthcare suppliers in audits of their wage practices by the United States. Department of Labor (” DOL”) and state DOLs. I have actually concerned discover that there are special wage hour concerns and obstacles in this market which numerous well-meaning companies, looking for to abide by the law, action on regulative landmines and wind up in difficulty.

Well, buckle up. The USDOL is stepping up its audit/enforcement efforts in this market, which it thinks is swarming with offenses. (And, it is right!) This follows the 2021 application of an across the country examination; this has, to date, led to practically 2000 examinations, healing of practically $30,000,000 in back earnings and more than $1,000,000 in agency-imposed charges, i.e., Civil Cash Charges.

The most significant concern is failure to pay overtime or keep correct records however there has actually been a rise in DOL lawsuits declaring misclassification offenses, i.e., misclassifying individuals as independent specialists. The information reveals that the Southeast (e.g., Alabama, Florida) is being concentrated on however that enforcement “cloud” will definitely infect all parts of the nation. In these audits of southern centers, the company discovered offenses in 90% of the audits carried out. More than $16,000,000 in back earnings has actually been protected for more than 13,000 employees.

The DOL cautions that companies need to “examine their pay practices to guarantee they abide by the law.” These practices need to concentrate on the special wage-hour concerns dealing with companies in the healthcare market, such as on-call time policies and initial and postliminary work, which includes employees can be found in early to carry out jobs connected to their main tasks. I have actually discovered this to be a problem in the audits of healthcare centers I have actually managed.

The Takeaway

The very best security is to carry out or have wage-hour counsel conduct, a major audit of all a company’s pay practices, implying examination of exemption categories, independent professional category, working time policies, on-call policies, bonus offer and commission policies and recordkeeping. That type of evaluation provides the company an excellent standard. I have actually done lots of these for customers, completion outcome being a bullet-pointed report, sans legalese, that apprises the company of the great, bad and the awful in its payment procedures. And, most notably, how to repair what’s incorrect!

An ounce of avoidance,,,


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