The Department of Health, Attorney General, Office of Medicaid Inspector General, and Department of Labor are taking a hard stand on Wage Parity Compliance, targeting home care employers that are not fully adhering to the Wage Parity Act (WPA).
Penalties can include any or all of the following:
However the Attorney General and OMIG have already conducted inspections and audits with extremely negative consequences for existing home care agencies. These organizations paid dearly for their indiscretions. Are you prepared to do the same?
Healthcare companies using “captive” insurance plans are especially vulnerable and the Department of Labor is specifically targeting these organizations with unfavorable outcomes. A number of class actions on behalf of workers have already been successfully brought and won under ERISA (the federal statute governing employee benefit plans) and the WPA (Wage Parity Act).
These lawsuits set an alarming precedent, with the potential for agency owners and operators to be held personally liable for unpaid wages and benefits, accused of grand larceny, and face potential civil and criminal Medicaid fraud prosecution.
Wage parity compliance in home care is now, and will continue to be, an area that many governmental agencies are enforcing vigorously. We can expect to see a rise in the number of ERISA and Wage Parity lawsuits levied against LHCSAs, CHHAs and FIs across NY State. Now is the time to address these issues to ensure you are not violating the law.
Agencies who are proactive about correcting Wage Parity practices are looked upon favorably by the State, even if you were previously non-compliant. Adopting a legitimate insurance plan can protect you from some, if not all, of the potential legal and financial consequences you may face. Act quickly to protect yourself and your business, before it’s too late.
If you are using a captive insurer or if you are concerned about your organization’s practices regarding Wage Parity, Condor can help. We will conduct a cost free review of your payment procedures and if necessary, facilitate coordination with an appropriate State and Federally approved insurer.
Contact Condor to learn more or fill out the form below to request a free Wage Parity review from our experienced consultants.