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Four Updates on the Fair Labor Standards Act (FLSA)

FLSA Survey

LeadingAge New York and others have been discussing a draft survey that was developed by the Department of Health (DOH) and Mercer, the state’s actuary, to arrive at the true cost of home care providers complying with the Fair Labor Standards Act (FLSA). Initially, the survey focused on the overtime, live-in cases and travel costs. We asked that the survey also include additional cost drivers such as recruitment, training, record keeping, IT and software.

Once the survey is final, DOH will post it to the Health Commerce System (HCS) for all home care providers to complete. After the findings are compiled DOH will be able to revise the rates, if needed, for 2016.

Dear Administrator Letters (DALs)

The DOH has posted three Dear Administrator Letters (DALs) on the Fair Labor Standards Act (FLSA) Rate Adjustments for Long Term Home Health Care Programs (LTHHCPs), Certified Home Health Agencies (CHHAs), and Personal Care providers. All of the DALs explain the total per hour adjustment estimate to be an increase of $0.34 per hour across all aide hours. The accompanying rate adjustments are retrospective and apply to services rendered between Oct. 13, 2015 and Dec. 31, 2015.

LeadingAge NY previously reported the Department of Labor (DOL) issued a final rule amending the FLSA regulations a couple of years ago, but it wasn’t until Oct. 13, 2015, that it became effective. We conducted another webinar to update members Oct. 22, 2015. We also reported on the DOH “Dear Colleague Letter” dated Nov. 9, 2015, that outlined upcoming adjustments of $0.34 per hour to Medicaid fee-for-service and managed care.

To review the DALs:

LTHHCP DAL;

CHHA DAL; and

Personal Care.

Please note the additional funding is provided under the recruitment, training and retention methodology authorized by PHL 3614, paragraphs 9 and 10. If the monies are not used to meet new overtime and travel requirements, agencies much use such funds for recruitment, training and retention of non-supervisory direct care workers only; and agencies are prohibited from using such funds for any other purpose.

We continue to advocate as per the “Dear Colleague” letter for the increase rate adjustment to flow to managed care plans and then to their contracted home care providers.

We will continue to keep members posted.

Contact: Cheryl Udell, cudell@leadingageny.org, 518-867-8871