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Primary Care Providers Win Challenge of CMS Interpretation of Enhanced Payment Law

With the help and support of the Tennessee Medical Association, 21 Tennessee physicians of underserved communities joined together and retained Bass, Berry & Sims to file suit against the Centers for Medicare & Medicaid Services to stop improper collection efforts. Our team, led by David King, was successful in halting efforts to recoup TennCare payments that were used legitimately to expand services in communities that needed them. Read more

Tennessee Medical Association & Bass, Berry & Sims

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Healthcare Private Equity Compliance Checklist

The complex and ever-changing healthcare regulatory and enforcement environment, including increased focus on the role of private equity firms in their portfolio companies, make compliance a top priority for private equity firms investing in healthcare companies. The best way to limit your exposure as a private equity firm is to avoid a compliance misstep in the first place. Additionally, an effective and robust compliance program for your portfolio healthcare company makes it much more attractive to potential buyers and helps you avoid an unexpected and costly investigation or valuation hit down the road. Download the Healthcare Private Equity Compliance Checklist to assess whether your portfolio company's compliance program is up-to-date.

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Labor Talk Blog: Update: Judge Halts Implementation of DOL Overtime Rule

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November 23, 2016

In a ruling announced yesterday, a federal judge in Texas has halted nationwide the effectiveness of the new salary level required to be paid by employers to those employees who are exempt from overtime. This alert will discuss briefly the ruling, its impact, and what employers should do in response.

As you will recall, the Department of Labor (DOL) announced an increase in the salary level for employees treated as exempt from overtime from the current salary level of $455 per week to $913 per week. The new salary level was scheduled to take effect December 1, 2016. In a case in Texas, several states and business groups claimed that the new salary level went beyond the DOL's authority, and they asked the Court to stop the new regulations from going into effect. Yesterday, Judge Amos L. Mazzant, United States District Court Judge for the Eastern District of Texas, agreed and halted implementation of the new federal overtime rules, at least temporarily, until the Court has an opportunity to consider whether the regulations were properly adopted.

A few questions emerge:

Does this mean the new salary level will never go into effect?

  • No, but the ruling does halt their effectiveness until further action is taken by this Court or the injunction is overturned on an appeal.
  • The DOL is currently considering whether to appeal.

What should employers do if they have already raised exempt employees' salaries to meet the new threshold or reclassified employees to non-exempt status?

  • This ruling is not easily susceptible to "one-size-fits-all" guidance, and we would encourage consulting with your employment counsel.
  • However, if employers have already implemented salary increases to meet the new salary level, we believe it would be wise to keep those increases in place. It would be difficult to retract those increases.
  • If employers have already announced salary increases but have not yet implemented them, we believe employers should consider whether to postpone implementing those increases pending further action in the lawsuit.
  • Similarly, if employers have already implemented reclassifications, we believe employers may wish to keep those reclassifications in place, especially given that the ruling is only a temporary halt of the new regulations. It may be more disruptive to attempt to "undo" those reclassifications, especially if the new regulations ultimately are implemented.
  • If employers have announced a planned reclassification but have not yet implemented them, we believe employers should consider whether to postpone those planned reclassifications until a later date, and again, pending further action in the lawsuit.

We certainly welcome the opportunity to discuss your particular circumstance and tailor an appropriate response for your situation.

Please reach out to your Bass, Berry & Sims attorney with any questions relating to this ruling.

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To continue reading the content in this article on the firm's Labor Talk blog, please click here to view the post.

Bass, Berry & Sims' Labor Talk blog features news, commentary and insights on the complicated and constantly changing labor and employment laws affecting employers.


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