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 Volume 24.01

On January 10, 2024, the Wage and Hour Division of the Department of Labor (“DOL”) issued a Final Rule (“Rule”) regarding “Employee or Independent Contractor Classification Under the Fair Labor Standards Act.”  The Rule is effective March 11, 2024, and could significantly impact many home care providers.

There are significant implications to organizations based on the classification of individuals providing services to the organization and the misclassification of these individuals by the organization.  The Rule provides six (6) key factors for the determination of whether the worker should be classified as an employee or an independent contractor.  These are as follows:

  • Potential for profit or loss based on managerial skill,
  • Investments made by both the worker and the company,
  • Duration and stability of the work relationship,
  • Level of control exercised over the worker, including technological supervision and constraints on work hours,
  • Importance of the work performed to the company’s operations, and
  • Skills and initiative demonstrated by the worker, including specialized skills and training dependence.

The six (6) factors above should collectively be considered in the determination of the classification of the worker.  No single factor is necessarily more important than any other in determination.  Additionally, other relevant factors may be important.

The DOL has released Frequently Asked Questions (“FAQ”) to assist companies in their assessment of the worker as well as other relevant issues.  The FAQ specifically speaks to many relevant issues.

A worker cannot voluntarily waive employee status and opt to be an independent contractor.

The FAQ is available here and the Rule is available here.


At the January meeting of the Medicare Payment Advisory Commission (“MedPAC”), the commissioners unanimously voted to recommend cutting home health payment rates by seven percent (7%) in 2025.  If such reductions were to be accepted by Congress, home health spending is estimated to decrease by $5 to $10 billion over five (5) years.

According to William A. Dombi, President of NAHC, “That recommendation is based on an antiquated methodology of assessment whether the rates are sufficient to provide beneficiaries with access to care.”

Additional information relating to the January 11-12, 2024 MedPAC meeting is available here.


The Health Group, LLC has committed to participating in the 2024 Financial Management Conference & Expo (July 21-23, 2024) and the 2024 Home Care and Hospice Conference and Expo (October 20 – October 22, 2024).

The July conference is being held in Las Vegas, Nevada and the October conference is being held in Tampa, Florida.  We will be exhibiting at both programs and look forward to visiting with our clients and friends.  We look forward to arranging time to meet with you during these programs.