Court Says Licensed Practical Nurses and Home Health Aides Are Employees, Not Independent Contractors: Your 5-Step Compliance Plan

A Pennsylvania federal court just found that a Philadelphia-area home health company misclassified its licensed professional nurses (LPNs) and home health aides (HHAs) as independent contractors, potentially putting the company on the hook for millions of dollars in back wages, liquidated damages, and civil penalties under the Fair Labor Standards Act (FLSA). The February 13 decision in Secretary of Labor v. Amazing Care Home Healthcare Services highlights the risks employers face when classifying workers as independent contractors, rather than employees. Getting this classification decision wrong can lead to serious consequences, so your company should consider this five-step compliance plan to mitigate your risk.

The Decision

The DOL sued Amazing Care, its owner, and its Director of Nursing for failing to pay LPNs and HHAs overtime under the FLSA. While the Trump administration has dialed back the more employee-friendly position that the Biden DOL took on this issue, this decision shows that employers must still be cognizant of contractor classification issues. And it further demonstrates that the federal government is still bringing enforcement actions in the independent contractor space.

At various times, Amazing Care had classified and reclassified the LPNs and HHAs as both independent contractors and employees. The company did not pay...

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