Contractors vs Employees: Healthcare Dispute

Posted on: July 23, 2015 by Javier iSure

The recent uproar over misclassification of workers has caused negative consequences for the healthcare industry. Dependent on whether a worker is classified as an independent contractor or an employee, certain benefits and protections are owed. In the wake of this dispute, ensure your facility’s regulations are in compliance with a law and protect it with a Florida Healthcare Industry Insurance policy. To avoid claims and maintain employee loyalty, here are a few guidelines to follow.

The Fair Labor Standards Act states that most workers are employees and that they are legally entitled to minimum wage, overtime compensation, unemployment insurance and workers’ compensation. The Labor Department recent proposed a new law that would make an additional 5 million workers eligible for overtime compensation. In turn, healthcare facilities are required to reexamine their policies for hourly wage workers. Here is what categorizes each worker:

Independent Contractor-If the worker in question performs duties that are essential to the operation of the business, they are most likely not a contractor. Independent contractors usually provide services for the employer intermittently rather than permanently. Another defining term of this type of worker: self-control of his or her schedule and earning potential. Independent contractors also typically provide their own materials and resources for their duties. Lastly, if the worker is providing a specialized skill to the independently to the employer, they are most likely categorized as an independent contractor.

Employee- Contrary to an independent contractor, employees are permanent workers who’s employer manages the workload and duties assigned. Employees do not have the flexibility with their schedules or earning potential as their obligations are predetermined by the employer. In other words, an employee is typically dependent upon the company for income. Lastly, employees are given resources by the employer who is in control of the worker’s wage, hours, and work conditions.

If employers are not in compliance with these regulations, investigations and lawsuits could ensue. It is critical to realize this rule is in place in order to protect workers and identify employer responsibility.

At iSure Insurance Brokers, we understand the implications of misclassifying healthcare workers. With more than thirty years in the industry, we are experts in the providing quality coverage specially crafted to cover your insurance needs. For more information, contact our specialists today at (855) 381-6123.

Posted in: Blog Healthcare Insurance