Employee misclassifications in the healthcare industry
Within the healthcare industry, some physicians do not think there is a significant difference between an employee and an independent contractor, especially when it comes to classifying workers like nurses, according to Physicians Practice. However, the difference is huge in the eyes of the U.S. Department of Labor, its Wage and Hour Division and employee rights attorneys.
If a doctor is found in violation of the Fair Labor Standards Act (FLSA) for misclassifying employees under incorrect exemptions, they could be subject to heavy fines from the Labor Department. On top of that, they could be forced to pay employees back wages for any overtime employee attendance for which they did not receive premium remuneration.
The news source points out that the correct classification does in fact affect medical practices in ways they may not expect. For example, employees and contractors are eligible for different types of insurance, payroll deductions and are required to be compliant with varying healthcare regulations.
To determine whether a nurse is an independent contractor or a bona fide employee, doctors should evaluate the degree of behavioral and financial control they can exert over a worker as well as the type of relationship.
Employers can consult the FLSA or seek expert help if they are uncertain about their employee classifications. They may want to invest in a payroll processing service to ensure accurate records are maintained if they ever run into trouble.
If a doctor is found in violation of the Fair Labor Standards Act (FLSA) for misclassifying employees under incorrect exemptions, they could be subject to heavy fines from the Labor Department. On top of that, they could be forced to pay employees back wages for any overtime employee attendance for which they did not receive premium remuneration.
The news source points out that the correct classification does in fact affect medical practices in ways they may not expect. For example, employees and contractors are eligible for different types of insurance, payroll deductions and are required to be compliant with varying healthcare regulations.
To determine whether a nurse is an independent contractor or a bona fide employee, doctors should evaluate the degree of behavioral and financial control they can exert over a worker as well as the type of relationship.
Employers can consult the FLSA or seek expert help if they are uncertain about their employee classifications. They may want to invest in a payroll processing service to ensure accurate records are maintained if they ever run into trouble.
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