Provider Coalition Seeks Flexibility in Proposed DOL Contract Worker Rule

McKnight’s Home Care | By Diane Eastabrook
 
A coalition of 17 provider organizations is urging the Department of Labor to consider the needs of the healthcare industry under a proposed rule aimed at cracking down on the misclassification of contract workers.
 
In a letter sent last month to DOL Secretary Marty Walsh, the groups — including the American Medical Association, the National Rural Health Association and American Association of Nurse Practitioners — argued that the rule modifying the employee or independent contractor classification under the Fair Labor Standards Act could exacerbate the worker shortage in healthcare. 
 
The organizations said the COVID-19 pandemic had increased demand for physicians, nurses and nurse practitioners, requiring providers to rely more heavily on contract workers to fill care gaps. 
 
“It is critical that the proposed rule ensure appropriate flexibility within the health care workforce so providers can continue to meet the health care needs of their communities,” the letter stated. 
 
The proposed rule will focus on whether a worker is economically dependent upon the entity sourcing the client for work or if the worker is, in fact, in business for themselves, according to home care attorney Angelo Spinola from Polsinelli Law. Spinola told McKnight’s Home Care Daily Pulse the proposed rule will negatively affect many healthcare providers, including home care agencies.
 
“It is common for providers to utilize contract labor, and the DOL’s proposed modifications will make it more likely for these contractors to be deemed as misclassified,” Spinola said. “This impacts consumer-directed models, nurse registries, home health providers who supplement the workforce with contract labor, staffing arrangements and a variety of other healthcare models. We have seen an uptick in DOL investigations surrounding contract labor and anticipate this trend will continue and create more challenges for any business utilizing contract labor if the new standard is adopted.”
 
The DOL announced the proposed rule last October, saying it would provide providers better guidance and help them avoid misclassifying employees. The department singled out home care as one of a dozen industries in which worker misclassification has been a problem.
 
“Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages,” Walsh said at the time. “The Department of Labor remains committed to addressing the issue of misclassification.

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