How the Right Technology Can Reduce Misclassification Risk for Home Care Providers

We analyze how contractor management system solutions can address the Field Assistance Bulletin’s misclassification guidelines--and automate time-consuming tasks in the process.

In 2015, the Department of Labor repealed the long-standing Companionship Exemption under the Fair Labor Standards Act (FLSA), replacing it three years later with a more detailed 10-point Field Assistance Bulletin (FAB) targeted at contractor misclassification. Though the changes to the FLSA were initially implemented to protect home care employees, health providers quickly discovered that the DOL would aggressively target nurse registry organizations, leaving them two choices: change their existing business model or face fines that could ultimately close their doors for good.

According to state-level studies, between 10% and 20% of employers misclassify at least one worker as an independent contractor. Industry leaders warn that government agencies are becoming more aggressive in cases linked to misclassification, as demonstrated by the guidelines put forth in the Department of Labor’s FAB. In this study, we’ll look at all 10 points of the FAB requirements—and how the Openforce platform addresses each one individually.

We provide innovative software and services built to reduce the risks and increase the efficiency of companies that use independent contractor workforces. Openforce’s technology empowers contracting companies to recruit, onboard, pay, and insure independent contractors compliantly and confidently.

Through decades of experience serving companies and contractors in home health, we understand the complexity, the ambiguity, the paperwork and all the other things that inevitably fall through the cracks. After years of helping contracting companies avoid and defend against misclassification claims, we’ve developed the tools and network to enable companies and independent contractors alike to adapt to a new world of work.