Those planning to develop a new hospice business, buy a company or expand an existing hospice organization often have staffing needs. They either need to hire talent or retain the people already working for the company.
Bringing in and keeping the right talent is crucial for the success of a hospice business. After all, hospice services are all about interpersonal relationships and soft skills. There is a delicate balance between maintaining appropriate staffing and controlling costs.
Complying with wage laws is of the utmost importance for hospice businesses. Employee lawsuits could cost far more than payroll compliance and can damage a company’s reputation, making it all but impossible to hire the best talent available. Many wage and hour lawsuits begin with complaints that an employer has failed to pay overtime wages. Are hospice employees exempt from overtime pay rules?
Most hospice workers are not exempt
Hourly workers are all eligible for overtime pay if they work more than 40 hours in any given work week. Many salaried employees are also eligible for overtime pay unless they are exempt.
For an employee to be exempt from overtime wage rules, they typically need to command a salary that is over the current federal threshold for exemption. Beginning January 1st, 2025, workers have to earn at least $58,656 to be exempt from overtime pay rules.
Most hospice companies do not offer their staff members salaries that high. Hospice companies must therefore be proactive about monitoring time worked if they want to avoid paying workers overtime when they stay late at a client’s house one evening.
Some organizations may try to sidestep overtime pay rules by hiring workers as independent contractors. Those attempting to do so must be very careful to ensure that their treatment of those workers is consistent with the treatment of independent contractors. Otherwise, they could end up accused of misclassification. The company could face not just wage claims but also tax and other compliance consequences.
Reviewing applicable wage and hour laws with a skilled legal team is crucial for the long-term success of a hospice company. Organizations that offer reasonable but competitive wages and that consistently adhere to all regulations have less reason to worry about worker lawsuits and compliance issues.