Florida Readies Its Own Health Insurance Exchange

By Phil Galewitz

KHN Staff Writer

OCT 09, 2011

ORLANDO, Fla.--Florida, which is fighting to overturn the federal health overhaul, is preparing to launch an insurance marketplace early next year that looks like a distant cousin of the ones being created under the federal law.

Florida's version aims to give small businesses – those with 50 or fewer employees – an online tool where they can easily shop for health plans offered in their county. The idea, backers say, is to entice employers who otherwise wouldn’t bother to offer coverage.

Florida would be the third state – and by far the largest — with an insurance exchange, following Massachusetts and Utah. The Florida program is a public-private partnership.

But there are key differences between Florida's exchange and the type that will be available in 2014 in all states through the federal law:

--Florida’s exchange is open only to small employers, not to individuals.

--The federal law provides subsidies to help lower-income individuals buy coverage through the exchange, and tax credits to some small businesses that cover their workers. Florida does not.

--The federal law requires health plans to offer certain "essential health benefits." Florida does not.

Participation in Florida's exchange is voluntary for both insurers and small businesses. But it is drawing only tepid support from health plans and insurance agents. That’s because both would pay a price for participating: Health plans would pay the exchange 2 percent of the premium for every policy sold through the exchange, and agents would pay $300 a year to sell policies through the exchange.

Ken Stevenson, a Tallahassee, Fla., insurance agent, says these extra costs, which would likely be passed on to employers, could end up making health coverage in Florida's exchange more expensive than policies sold outside it.

"It defeats the whole purpose of having this," he said.

Michael Garner, CEO of the Florida Association of Health Plans, said the insurance industry supports the concept of the marketplace, although key details have to be worked out. "There's no silver bullet, but anything that offers more alternatives to employers can make it more likely they will take up coverage," he said. 

Still, a top official with a large Florida insurer said the industry remains unconvinced that selling coverage through the exchange would offer any advantages over selling outside. He spoke on the conditionof anonymity because his company is part of an exchange advisory group.

For the past three years the Sunshine State has had the third highest uninsured rate in the country, after Texas and New Mexico, according to Census data. More than 21 percent of Florida residents under 65 are uninsured, or about 3.8 million people.

Premiums for a family health plan in Florida offered by employers with fewer than 50 workers increased 21 percent from 2003 to 2009, according to a report by the Commonwealth Fund. That is below the 29 percent national average. But Florida is one of 16 states and the District of Columbia where the average annual premium for family coverage equaled 19.9 percent or more of median household income, the fund stated.

Florida's Republican leaders are staunchly opposed to the federal health law. Then-Attorney General Bill McCollum was quick to file suit against it last year and 25 other states joined in the effort. Gov. Rick Scott turned away millions of dollars in federal health law grants, including money that would help establish a state insurance exchange that meets federal requirements. Florida is also seeking a waiver from the law's requirement that insurers spend at least 80 percent of premium revenue on health costs.

Efforts by states to set up an exchange under the federal health law have been slow getting off the ground. So far about a dozen states have passed legislation enabling an exchange, and Rhode Island is establishing one through executive order.

Massachusetts' and Utah's exchanges, which have been running for a couple years, are quite different. The Massachusetts exchange, known as the Connector, solicits bids from insurers and negotiates prices and benefits to keep costs down and requires insurers to offer standardized policies. The Utah exchange accepts any health plan as long as they meet some minimal requirements and doesn't restrict the products they offer. Florida is being modeled after the Utah exchange.

The Florida initiative, which officials refuse to label an exchange, predates the federal law. The program, known as Florida Health Choices, was created in 2008 at the urging of then-Florida House Speaker Marco Rubio, a Republican who is now a U.S. senator.

The program initially languished, but in recent months a company was hired to administer it, insurers have begun to submit benefit and cost data, and officials plan to make the site live in early 2012, according to Rose Naff, executive director of Florida Health Choices.

"We are making significant progress," she said.

The exchange will sell policies to employers with four to 50 workers. Employers will be able to get a base premium from the Web site but will have to work with a participating agent to get exact prices, which vary based on the age and health of employees. 

Naff cited two big advantages of the exchange: Employers can fill out one application to apply for coverage at multiple insurers, and they will be able to offer up to four different health plans to their workers.

Yet small businesses are not showing much enthusiasm for Florida Health Choices. Bill Herrle, executive director of the Florida chapter of the National Federation of Independent Business, said it will still be difficult to compare plans, because there are no standard policies for carriers to offer. In addition, he said, the exchange won't directly lower premium costs.

"It will have minimal effect," he said. 

Naff acknowledges that her exchange could be short lived or forced to make major changes in 2014, when the federal government will offer an exchange meeting requirements of the ACA in states that fail to do so on their own. "There are a lot of unanswered questions. … If there is a federal exchange in Florida, we may have to evolve into something else," she said.

Click here for links related to this article and more information.

Obama pulls plug on part of health overhaul law

By RICARDO ALONSO-ZALDIVAR Associated Press

WASHINGTON (AP) -- The White House appeared to waffle Monday on the fate of a financially troubled long-term care program in President Barack Obama's health overhaul law, as supporters and foes heaped criticism on the administration.

At stake is the CLASS Act, a major new program intended to provide affordable long-term care insurance. Last Friday, Health and Human Services Secretary Kathleen Sebelius said the administration would not proceed with the plan because she has been unable to find a way to make the program financially solvent.

On Monday, the nonpartisan Congressional Budget Office issued a ruling that cleared the way for repealing the CLASS Act, but the administration rejected that step - and created considerable confusion. Backers and opponents said the White House is trying to have it both ways.

"I feel like somebody just called me about how to do really good pet care after they shot my dog," said Larry Minnix, president of LeadingAge, a trade group representing non-profit nursing homes, which are strong supporters of CLASS.

Paying for long-term care for a frail, elderly family member is a major financial dilemma for America's middle class. Medicare only covers short-term nursing home stays, for patients in rehab. And to become eligible for Medicaid, people have to spend most of their assets, akin to impoverishing themselves. The Community Living Assistance Services and Supports program was supposed to help provide an answer.

A long-standing priority of the late Sen. Edward M. Kennedy, it was supposed to function as a self-sustaining voluntary insurance plan, open to working adults regardless of age or health.

Workers would pay an affordable monthly premium during their careers and could collect a modest daily cash benefit of at least $50 if they became disabled later in life. The money could go for services at home or to help with nursing home bills.

But a central design flaw dogged CLASS. Unless large numbers of healthy people willingly sign up during their working years, soaring premiums driven by the needs of disabled beneficiaries would destabilize it, eventually requiring a taxpayer bailout.

After months insisting that could be fixed, Sebelius finally acknowledged Friday she didn't see how.

"Despite our best analytical efforts, I do not see a viable path forward for CLASS implementation at this time," she said in a letter to congressional leaders.

Officials said they discovered they could not make CLASS both affordable and financially solvent while keeping it a voluntary program open to virtually all workers, as the law required. The law mandated that the administration certify CLASS would remain financially solvent for 75 years before putting it into place.

As long as CLASS remained a possibility - even on paper - Republicans pushing its repeal would have had to come up with $86 billion in savings attributed to the program in its first 10 years, when income from premiums would more than cover benefit costs.

But the budget office said Monday that since the administration is not going ahead with CLASS, a repeal bill doesn't need offsetting savings. Instead, the CBO will raise its estimate of the deficit.

That ruling removed a major obstacle for repeal, and Republicans vowed to press ahead. The administration balked.

"We do not support repeal," White House spokesman Nick Papas said Monday. "Repealing the CLASS Act isn't necessary or productive. What we should be doing is working together to address the long-term care challenges we face in this country."

He declined to answer if the president would veto a repeal bill.

Republicans said at a time of record deficits, the administration is now in a position of saying it wants to keep alive a program it acknowledges would probably go bust.

"It defies logic for the White House to admit this part of their health spending bill would put an unsustainable burden on taxpayers, yet demand it stay on the books," said Senate Republican Leader Mitch McConnell of Kentucky.

Adding to the uncertainty, a top technical expert who worked on CLASS financing for the administration appeared to contradict Sebelius' conclusions. Robert Yee, an actuary who specializes in long-range financial planning, said Monday that he had found a possible path forward. Yee's ideas would involve marketing the plan first to groups of primarily healthy people, and also possibly requiring those in poor health to wait longer before they could receive benefits.

It was unclear whether either of those approaches would be acceptable to the coalition of CLASS supporters - or Sebelius and the administration.

Supporters of the program say the administration will pay a political price if it tosses out the long-term care plan. AARP, the seniors lobby, has called the decision by Sebelius premature

"If they said they want to hibernate it for a couple of years, that would be clearer than what they are saying now," said Minnix.

Click here for a video, links and the original AP article.

Tip Tuesday: Should employers require employees to have flu vaccinations?

Experts: Encourange, Don't Require, Flu Shots

Thinking about requiring your employees to get flu shots? It’s tempting: A survey from Walgreen’s drugstore chain found that companies paid more than $10 billion in paid sick days during the 2010-11 flu season.

But the legal headaches from mandating the vaccination might be more painful than the aches and chills of the flu itself, said Edel Cuadra, a partner in the Dallas office of national labor and employment law firm Constangy, Brooks & Smith, LLP. Forcing employees to get flu shots brings up issues with the U.S. Equal Employment Opportunity Commission, Title VII of the Civil Rights Act and the Americans with Disabilities Act Amendments Act (ADAAA).

“Any time you have a policy without wiggle room, you’re going to get yourself in trouble,” Cuadra said. “There are exceptions to every rule.”

Employees can have medical or religious reasons for refusing a vaccination. For example, people with allergies to eggs (the vaccine is grown in chicken eggs) or with a history of Guillain-Barre syndrome should not get the flu shot. Religious reasons include not wanting to receive a vaccination because some faiths have tenets that prohibit invasions of the body or that disallow animals to have been harmed in the making of the vaccine.

Some health care businesses have required their employees to be vaccinated or wear a surgical mask for the flu season—which can last for several months. A clinic in Boston saw its percentage of vaccinated employees jump from 70 percent to 96 percent when it imposed this requirement. However, Cuadra discourages the practice.

“That’s like a scarlet letter—it singles (the unvaccinated employees) out for adverse treatment from co-workers,” Cuadra said. “That’s not going to be good for morale.”

And those employers will run up against the ADAAA, Cuadra said, because unvaccinated employees might then be “regarded as” having the flu, especially if they make the employees wear a mask.

A better way to encourage employees to get the flu shot is through education and incentives, Cuadra said. If employers want to require employees to get the vaccine, the U.S. Occupational Safety and Health Administration encourages employers to educate the recipients on the benefits of the vaccine.

“Get the employee buy-in; that’s critical. Otherwise, [demanding the vaccination] is invasive and overstepping,” Cuadra said.

Employers can offer time off to go get the shot or as a reward for getting vaccinated, a monetary reward, or a casual dress day if the employee gets the shot before a certain deadline, he suggested. One colleague who works at a nursing home arranged a pizza party in conjunction with on-site flu shots, Cuadra said. Employees lined up for their flu shot, then lined up for their free lunch.

“It worked wonderfully, and everyone was grateful for it,” Cuadra said.

As a disincentive, employees who don’t get the shot could be required to take time off with a notice of violating policy or a failure to adhere to the policy slipped into their personnel folders. But firing employees for not getting the shot might be a step too far, Cuadra said. 

“You’re going to get in more trouble, taking that stance,” he said.

Click here for the complete article, links and credits.

HR’s newest technological tussle: Smartphone and iPads

May 31, 2011 by Tim Gould

Just when you thought you’d made the workplace safe for social media, up pops a new technological headache.

More and more people are starting to use smartphones and tablets — not just in their personal lives, but for work purposes.

That spells trouble for companies – not just in terms of work time wasted, but also in security problems and policy violations.

HR should partner with IT to create a sound smartphone and tablet use policy, and work to communicate that policy effectively to staffers.  

Three tips on how to handle smartphones and tablets in the workplace, courtesy of Philip Gordon on the Workplace Privacy Counsel blog:

• Get consent so you can access the device if necessary. Just as you may need to look at the contents of a staffer’s computer in the event of a workplace investigation, so too might you need to get info off of a staffer’s personal device.
  The problem: Unlike company-issued computers or phones, you have no right to access a worker’s personal device – even if you have a legitimate business purpose.
  There is one way around that, however. Notify employees for whom you’ve given consent to use devices at work that if they refuse to allow you to access their device, you can discipline them up to and including firing them.

• Keep employees in the know. It’s likely on HR to let employees know about policy changes, and that remains the same for access and use of personal devices like iPads or iPhones both at and for work.
  The main concern with personal devices in the workplace: Since they can be used activities like peer-to-peer file sharing, downloading games or viewing pornography that are, well, not so appropriate for work, they can infect a company’s network with viruses.
  One solution: Have staffers load an approved virus protection software onto their personal devices to protect your corporate network.
• How will you get info back from employees if they’re fired?You likely have a policy in place about how to retrieve documents and certain electronic info in the unfortunate instance an employee gets canned.
  Now you’ve got to add a new wrinkle to that policy if employees have been using their personal smartphones or tablets for work — otherwise, those staffers could walk off with your data.
  Best bet: As part of the exit interview process, add a policy about reviewing an employee device before they walk out the door.

For more information and the complete article Click Here.

7 steps to shoo the flu

By Karis Gabrielson, R.N. As the flu season gets underway, take a minute to remind yourself how you can stay well. These seven steps can help protect you, your family — and others, too: 1. Get vaccinated. A yearly vaccine is the No. 1 line of defense against the flu. It's recommended for most people ages 6 months and older. 2. Wash up. Put a stop to viruses and other germs with regular hand-washing. If soap and water aren't available, use an alcohol-based hand sanitizer instead. 3. Don't be too touchy-feely. Try not to touch your eyes, nose and mouth with your hands. 4. Wipe 'em out. Viruses can survive on surfaces for days. So, regularly use a household disinfectant to clean objects that people handle frequently — such as doorknobs, remote controls and computer keyboards. 5. Steer clear. As much as possible, avoid people who are ill. 6. Lay low. Except for medical visits and other necessities, avoid going out until you're better. A general guideline: Stay home until you're fever-free for at least 24 hours — without the help of a fever-reducing medicine. 7. Cover it! Cough or sneeze into a tissue or your arm. And, follow up with a thorough hand-washing. To get the latest information on the 2011-2012 flu season — including where to find the flu clinics near you — Click here!

Benefits confuse 3 in 4 workers: What you can do now

October 12, 2011 by Christian Schappel

One stat you’ll want to keep in mind when preparing for open enrollment: 76% of employees who make decisions about their benefits coverage say they’ve made mistakes selecting benefits options.

What’s worse: 42% say they’ve lost money because of those mistakes.

That’s according to the 2011 Aflac WorkForces Report, which surveyed 2,220 U.S. adult workers.

Clearly, employees are confused. Check this out:

• 74% say when thinking about their benefits choices, they sometimes, rarely or never understand everything that’s covered by their policy options — particularly when it comes to health coverage, and
• 59% of those who choose the same benefits every year sometimes, rarely or never have a full understanding of the changes in the policies each year.

What to do next

There’s still time to bolster your benefits communications this year.

Five best practices:

• Survey your employees. Before putting together this year’s open enrollment materials, find out what caused the most problems/confusion last year by surveying workers.
• Create an FAQ. Chances are you spend a lot of time fielding the same questions every year. Save yourself some time by taking those questions and creating a Frequently Asked Questions handout you can distribute during open enrollment.
• Communicate year-round. Handing employees a think packet of information is overwhelming, and many just won’t take the time to read through it thoroughly. One way to get employees to absorb everything is to give it to them in bite-size chucks throughout the year. Create a blog on your company intranet and use it to post one short (500 words max) educational article every week or so. You’ll also want to post a glossary of benefits terms on the intranet — but even with it, you’ll want to make sure you use benefits jargon sparingly in your communications.
• Explain healthcare reform. Not much has happened with healthcare reform this year, but employees are still hearing about it through the media. Keep them abreast of what’s going on — even if you have to say, “Nothing’s going on.” The aforementioned blog would be a great place to do this.
• Promote cost-cutting tactics. More employers say they’ll push more health insurance costs onto their employees in 2012. To ease the blow, explain how they can keep their out-of-pocket costs down — by switching to generics, participating in wellness programs and taking advantage of flexible spending/health savings accounts. This can ease a lot of the frustration associated with health benefits and help employees make decisions about their options more clearly.

Click here for the original article and links.

Tip Tuesday: 7 days – 7 ways – to help kids thrive

By Michael W. Rosen, M.D.

Raising kids to have good health habits is sometimes easier said than done. Maybe your child's frantic morning hunt for a misplaced backpack bumps a healthy breakfast. Or, you may have a child who seems much more fond of lounging on the couch than riding a bike.

But, even if every day isn't pure perfection, it's still important to do what you can to promote healthful behaviors. Take food and activity, for example. The habits your children establish now can help them maintain a healthy weight — possibly for years to come.

So, how about taking a week to try out a few good habits? Just take it one day at a time:

Monday: Add berries to your child's breakfast cereal. Bonus points: Make it a low-sugar whole-grain cereal — served with low-fat milk.

A habit to hold on to: Give your kids a nutritious start to the day.

Tuesday: Put the kids in charge of setting the table for dinner together.

A habit to hold on to: Enjoy more shared mealtimes each week. Families who do tend to eat better.

Wednesday: Set a family screen-time limit of two hours a day — for TV viewing, that should be quality programming only. And, vow that you'll follow it, too. Remember, no screen time is best for children ages 2 years or younger.

A habit to hold on to: Spend less sedentary time with electronics, including TVs, computers, video games and wireless devices.

Thursday: Make it kids-in-the-kitchen night! Help them plan a healthful menu. Ask them to pick produce they like — and let them stir the soup or toss the salad.

A habit to hold on to: Get your kids involved in food choices and preparation. They'll likely be more willing to sample new foods.

Friday: Ask your child to come out and play. Maybe it's kickball, tag or tennis.

A habit to hold on to: Encourage plenty of physical activity. Kids need at least 60 minutes a day of it.

Saturday: At the grocery store, dub your child the label inspector. He or she may be quite proud to help you compare Nutrition Facts on products.

A habit to hold on to: Teach kids to make wise nutritional choices and purchases.

Sunday: Place baggies of cut-up veggies and fruit in the fridge for the week ahead. Point kids to these grab-and-go snacks.

A habit to hold on to: Make healthful snack options easy for kids to choose.

Try to keep up these positive steps — and add new ones as you can. Soon, good habits will be second nature to your family. Click here for more information and additional links.

5 goals for living well with rheumatoid arthritis

By Michael W. Rosen, M.D.

Peeling an orange. Lacing up your shoes. Taking the dog for a stroll.

These everyday tasks may be simple for some. But, for those living with rheumatoid arthritis (RA), they might be a real challenge.

This form of arthritis causes joint pain, stiffness and inflammation. RA can be mildly uncomfortable for some people. But, for others it's often very painful. In many cases, symptoms come and go — sometimes called a flare-up. If you're newly diagnosed with this condition, you may be concerned about how it could affect your life.

Moving forward: 5 goals for your care

Fortunately, much has been learned about managing RA. And, treatments have improved dramatically.

It's important to work closely with your doctor to care for your condition — so you can stay as active and comfortable as possible. Together, you'll develop a personal treatment plan. This will help you find ways to:

1. Ease discomfort, achiness and joint pain

2. Reduce inflammation and swelling in and around joints

3. Slow down or stop joint damage

4. Maintain your ability to do daily tasks

5. Improve your overall sense of well-being

Your plan may include:

Medications. There are several medications for RA that have been approved by the Food and Drug Administration. These medicines can lessen pain and inflammation. Some may help slow the progression of RA, as well.

Rest and exercise. People with RA need a good balance between the two. Extra rest may be particularly helpful when symptoms flare up. And, regular exercise — including aerobic, strength and stretching activities — is important to help keep muscles strong and joints mobile. It may also ease pain and fatigue — and help people sleep better, maintain positive attitudes and control their weight.

Self-care strategies. These steps may help reduce stress on joints and make life easier:

• Heat or cold therapy*, per your doctor's instructions
• Splints to help support joints and reduce swelling — on wrists and ankles, for example
• Special tools for tasks — such as long-handled shoehorns and comfort-grip handles on zippers and other utensils

Stress management. This might also include relaxation techniques, support groups or counseling.**

Be sure to talk with your doctor if you have questions or concerns about your care plan. If your condition changes, your treatment may need to, as well.

For more information Click Here.

NLRB puts off deadline for notice requirement

October 7, 2011 by Tim Gould

The National Labor Relations Board has pushed back the deadline for compliance with its controversial requirement that employers post a notice explaining workers’ rights to form unions.

According to a NLRB press release, the board postponed the effective date of the requirement from Nov. 14 to Jan. 31 of this year.

Why? “In order to allow for enhanced education and outreach to employers, particularly those who operate small and medium sized businesses,” the NLRB statement said.

“The decision to extend the rollout period followed queries from businesses and trade organizations indicating uncertainty about which businesses fall under the Board’s jurisdiction, and was made in the interest of ensuring broad voluntary compliance. No other changes in the rule, or in the form or content of the notice, will be made,” the statement continued.

The press release doesn’t mention two pending federal lawsuits — both of which claim the NLRB overstepped its jurisdiction by requiring employers to post the notice.

We’ll keep you posted.  Click here for links and the original article.

Tip Tuesday: 5 burnout busters! Stay inspired to perspire

By William Weese, M.D.


Some people revel in the routine. The same workout regimen, week in and week out, fits them to a T.

But, for others, monotony's a ticket to boredom — and the next stop may be exercise burnout. And, when the spark is gone, it's all too easy to go from ho-hum to lazy bum.

Are you feeling less than jazzed about your regular workouts? It may be time to shake things up a bit. Here are five stay-inspired strategies to try:

1. Tweak it a touch
For instance, if you usually walk, add a few minutes of jogging or stair climbing. Or, on days when you strength train, try doing your exercises in a different order than usual. For a change of scenery, move your workouts outdoors — weather permitting. Run, hike or bike on a trail.

2. Be a tedium-free twosome
Recruit a friend to join you on your fitness quest. A workout buddy can motivate you — and help keep boredom at bay.

3. Pursue something new
You might try your hand — and feet — at kickboxing, spinning or circuit training classes. Or, maybe tap into your team spirit and join a volleyball, soccer or softball league.

4. Make it a pleasure
You know what you enjoy. Maybe you can pair it with activity. Love music? Shake it at salsa, hip-hop — or ballroom dancing. Or, perhaps, you're a literature buff. Download an audio book — and pedal your stationary bike through twists in the plot.

5. Reach for a goal
How about signing up for a local 5K race? Or, perhaps pledge to get in all your workouts for two weeks. Hold yourself to it — then reward yourself, too. Maybe you'd love a quiet afternoon curled up with a good book. Or, keep the incentive going by making your prize new workout clothes or gear.

One caution as you get moving: For safety's sake, talk with your doctor before significantly increasing your activity level. 


Click Here for the original article and more links!

Dependent coverage rule = 1M more insured youngsters

September 29, 2011 by Christian Schappel

New data shows that healthcare reform’s dependent coverage rule has led to nearly one million young adults acquiring medical insurance.

The Department of Health and Human Service (HHS) just announced that the results from a national health survey show the percentage of adults between the ages of 19 and 25 with health insurance increased by 3.5% in the first quarter of 2011. 

That means about one million young adults who didn’t have coverage last year are now insured.

Under the healthcare reform law, medical plans must extend coverage to participants’ children until age 26.

Federal researchers are saying the increase is a result of the reform law mandate. 

“While it is theoretically possible that the increase in insurance coverage for young adults in 2011 is due to some factor other than the Affordable Care Act, it is hard to identify a plausible alternative explanation for the increase in coverage among young adults,” said in a statement released by the HHS.

The HHS also said its conclusion is supported by findings from other organizations.

Some stats the HHS points to:

• A recent Gallup survey shows the rate of insured adults ages 18 to 25 went from 71% in the first quarter of 2010 to 75.1% in the second quarter of 2011, and
• Results from a U.S. Census Bureau Current Population Survey found roughly 400,000 additional adults ages 19 to 25 were insured during 2010 compared to 2009.

Click here for more links and the original article.

Watch out for new push in FLSA enforcement

September 22, 2011 by Tim Gould

Heads up: The feds and a group of states are taking a tag-team approach to making sure employees are properly classified under the Fair Labor Standards Act.

The Department of Labor (DOL), Internal Revenue Service (IRS) and nine states are joining forces to crack down on companies that improperly classify workers as independent contractors.

The central concept is that state and federal agencies will now exchange information about companies in violation of the independent contractor rules.

That means an employer could be facing sanctions from both state and federal labor agencies — not to mention the tax implications of getting the IRS in on the act.

The states involved so far are Connecticut, Hawaii, Maryland, Massachusetts, Minnesota, Missouri, Montana, Utah and Washington.

Other states can join the initiative. It’s expected New York will come aboard in the near future.

The key questions

The move is but the latest chapter in ongoing efforts to crack down on the use of independent contractor status as a means to avoid “providing employment protections,” in the words of a DOL press release.

So once again, it’s time for employers to check classification procedures to make sure they’re in line with state and federal law. 

John E. Thompson, writing on Fisher & Phillips Wage and Hour Laws blog, offers a list of critical questions to ask when considering a worker’s FLSA status:

• Are the individual’s services an integral part of the organization’s activities?
• Does the individual have any significant investment in facilities or equipment?
• Does the individual have an opportunity for profit and loss in a business sense?
• Does the individual exercise a businessperson’s initiative, judgment, or foresight?
• Is the relationship is permanent or indefinite, rather than for a determinable time?
• Does the individual have meaningful and predominant control over the work’s details?
• How much control does the organization retain over the work’s details?

For more information and links Click Here.