Staying Competitive in the LTC Industry While Avoiding Misclassification Under FLSA
Lane Powell attorneys Sarah Swale and Kelly Lipscomb authored a November 2013 American Health Lawyers Association LTC-SIR Advisor article titled “Staying Competitive in the LTC Industry While Avoiding Misclassification Under FLSA.” In the article, Swale and Lipscomb discussed the classification of exempt vs. non-exempt employees as it relates to the long term care (“LTC”) industry. They also answered the following questions: How do I know if any employee is a learned professional under the Fair Labor Standards Act?; How must I pay learned professionals to maintain the exemption?; and What if I pay employees on a pay-per-visit basis?
Employee compensation certainly affects an employer’s bottom line, and unnecessary overtime can put quite a dent in it. Understandably, employers strive to classify as many of their employees as exempt as the law allows to avoid what can sometimes be crippling overtime costs when calculated across the workforce. Determining whether employees are properly classified as exempt can be dicey, however, as the analysis is often incredibly fact specific. Additionally, long term care employers frequently grapple with the proper classification for employees who perform nursing duties, who may or may not qualify for the learned-professional exemption. This analysis may be further complicated in the LTC industry by alternative payment methods such as pay-per-visit.
Copyright 2013, American Health Lawyers Association, Washington, DC. Reprint permission granted.