wage parity revisited

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Post on 23-Aug-2014

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The Home Care Worker Parity Living Wage Law brought about sweeping reforms for the home health care industry. Now, surprising guidance released in May, 2014 has shaken many assumptions about overtime pay and additional wages. Is your company in compliance with the new guidance? BDB Payroll Services provides you with a step-by-step update on these challenging developments: ~ Overtime and Wage Parity: The Good, the Bad and the Ugly ~ Surprise! New Revelations about Additional Wage ~ Use it or Lose it Rule ~ Coordination with NYC Paid Sick Leave Law ~ Self-Insured Plans Redux: Are They Compliant? ~ QIVAPP update ~ BDB Solutions for Healthcare Businesses Slides were presented at a Special Webinar for BDB's clients who operate in the healthcare industry and BDB's affiliate CPA's.

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  • PAYROLL SERVICES TM Presented by: Yonina Shineweather CPA yshineweather@bdbpayroll.com Zishe Glauber zisheg@bdbpayroll.com ! 07/23/2014 1 NY Wage Parity Revisited: How Surprising New Developments Impact Your Business
  • PAYROLL SERVICES TM Part I: The Old and The News 2
  • PAYROLL SERVICES TM Public Health Law 3614-c Home Care Worker Wage Parity. Beginning March 1, 2012, established a minimum wage for home care aides who perform Medicaid reimbursed work for certied home health agencies (CHHAs), long term home health care programs (LTHHCPs) and managed care organizations (MCOs) within New York City and within the counties of Nassau, Suffolk and Westchester. 3
  • PAYROLL SERVICES TM A Brief Wage Parity History 4 New$York$City$ Nassau,$Suolk$,$Westchester$ March&1,&2012& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$9.00& Addi5onal:& Supplemental:&&&&&&&&&&&&&&&&&&&&$1.35&&&&&&&&&&&&&&&90%& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.88&???& Base:& Addi5onal:& Supplemental:& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.88& March&1,&2013& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$&9.50& Addi5onal:& Supplemental:&&&&&&&&&&&&&&&&&&&&&$&1.43&&&&&&&&&&&&&&95%& OT&(un5l&12/31/13):&&&&&&&&&&&$10.88&???& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&$&9.00& Addi5onal:& Supplemental:&&&&&&&&&&&$&&1.35&&&&&&&&&&&&&&&&&&&90%& OT&(un5l&12/31/13):&$10.88&???& March&1,&2014& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.00& Addi5onal:&&&&&&&&&&&&&&&&&&&&&&&&&&&$1.69& Supplemental:&&&&&&&&&&&&&&&&&&&&&$2.40&&&&&&&&&&&&&&&100%& OT&(from&12/31/13):&&&&&&&&&&&$16.09& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&$&&9.50& Addi5onal:& Supplemental:&&&&&&&&&&&&$&&1.43&&&&&&&&&&&&&&&&&&95%& OT&(from&12/31/13):&$13.43& January&1,&2015& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.00& Addi5onal:&&&&&&&&&&&&&&&&&&&&&&&&&&&$1.69& Supplemental:&&&&&&&&&&&&&&&&&&&&&$2.40&&&&&&&&&&&&&&&100%& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$19.09& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&$&9.50& Addi5onal:& Supplemental:&&&&&&&&&&&$&1.43&&&&&&&&&&&&&&&&&&&&95%& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$15.68& March&1,&2015& SAME&AS&ABOVE& Base:&&&&&&&&&&&&&&&&&&&&&&&&&&&$10.00& Addi5onal:&&&&&&&&&&&&&&&&&& Supplemental:&&&&&&&&&&&$2.40&&&&&&&&&&&&&&&&&&&&&&&100%& OT:&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&$17.40& & March&1,&2016& SAME&AS&ABOVE& Lesser&of:&115%&of&the&total&compensa5on&of& NYC;&&OR& the&total&compensa5on&mandated&by&the&living& wage&law&of&Nassau,&Suolk&or&Westchester& coun5es&depending&on&episode&of&care& loca5on.& & PAYROLL SERVICES TM
  • PAYROLL SERVICES TM What Qualifies as Supplemental Wage? Health Pension Dental Vision Medical FSA Life insurance Extended disability Critical injury PTO Transit checks (DOH silence) Child care benets Education (voluntary, for employees, not work related) 5
  • PAYROLL SERVICES TM What qualifies as Additional Wage? Not overtime Vacation Sick Holiday Personal Shift or assignment differential/premium 28 PTO days per year Accruals to meet NYC Sick Pay Law AND THE NEWS. 6
  • PAYROLL SERVICES TM SURPRISE! NEW REVELATIONS 7 ABOUT ADDITIONAL WAGE
  • PAYROLL SERVICES TM ADDITIONAL WAGES CAN BE SUPPLEMENTAL WAGES! 8 (1199 United Healthcare Workers was right)
  • PAYROLL SERVICES TM ADVANTAGES TAX BENEFITS ACA BENEFITS ($1.69 + $2.40) x 40 HOURS = $163.60 / WEEK $708.93 / MONTH CREATIVE BENEFIT ARRANGEMENTS POSSIBLE 9
  • PAYROLL SERVICES TM DISADVANTAGES EXISTING PTO MAY SATISFY REQUIREMENTS DIFFERENTIALS: AVERAGE OVER WORKFORCE EMPLOYER GAINS FROM USE IT OR LOSE IT 10
  • PAYROLL SERVICES TM Is Your Package as Good or Better? Annual leave: accrued at one hour for every 26 worked (up to 2.3 hours per week and 10 days or 120 hours per year) Sick leave: accrued at one hour for every 26 worked (up to 2.3 hours per week and 10 days or 120 hours per year) Personal day: accrued at one hour for every 250 worked (up to 8 hours per year) Holidays: New Years Day, Martin Luther King Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day Paid time off: when they fall on days that the employees are scheduled to work Premium pay: 1.5 times the base, when employees work on any of ve holidays designated by the employer for premium pay Live-in work: an extra $16.95 per day, or $1.4125 per hour Weekend work: an extra $1.10 per hour Multiple clients: an extra $0.50 per hour 11
  • PAYROLL SERVICES TM Weighted Average of Differentials Allowed Total wage differentials paid to covered workers divided by total hours worked by covered workers >= $1.69 If < $1.69, use PTO accruals to supplement 12
  • PAYROLL SERVICES TM USE IT OR LOSE IT RULE Employers can limit roll-overs No guidance on limits of limit 13
  • PAYROLL SERVICES TM Coordination with NYC Paid Sick Leave Law NYC sick accruals count as Additional Valued at $0.33 toward the $1.69 1/30 x $10 = $0.33 If rate is > $10.00, accrual is worth more Example: Employee rate = $11 Accrual is worth $0.37 toward the $1.69 1/30 x $11 = $0.37 14
  • PAYROLL SERVICES TM Overtime: The Good, the Bad and the Ugly 15
  • PAYROLL SERVICES TM The Way it Was 1. No DOH guidance, even to NYSAHCP 2. PHI position: no wage parity for OT: $12.00 3. Some: Pay regular time wage parity: $14.09 4. Some: Pay OT + sup. + addit: $16.09 16
  • PAYROLL SERVICES TM The Go

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