The Center for Medicaid & Medicare Services ("CMS") has recently increased its efforts to prevent fraud through audits conducted by Recovery Audit Contractors ("RACs"). However, the House Oversight Committee questioned the RACs methods.  

The Oversight Committee noted that the pre-payment and post-payment audits are creating a backlog of close to one million cases. They also noted that the RACs approach puts unnecessary strain on small businesses by treating them as guilty until proven innocent. The Committee recognized the financial burden incurred by physicians and hospitals in defending themselves from audits.

We will continue to monitor the federal status of CMS audits; however, until changes are implemented, providers should be proactive to ensure they are protected from overzealous auditors. 

To discuss how to protect yourself from a CMS audit, contact Feldman Kieffer.

The Fair Labor Standards Act ("FLSA") requires employers to pay their non-exempt employees a minimum wage. Unpaid interns may be considered employees if employers do not meet the six guidelines established by the FLSA:

1. The internship is similar to training which would be given in an educational environment;   

2. The internship experience is for the benefit of the intern;  

3. The intern does not displace regular employees, but works under close supervision of existing staff;  

4. The employer that provides the training derives no immediate advantage from the activities of the intern, and on occasion its operations may actually be impeded;  

5. The intern is not necessarily entitled to a job at the conclusion of the internship; and,  

6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.  

Establish clear guidelines with any unpaid intern, as well as the supervisory staff, to ensure that your unpaid internship program does not turn into an unpaid employment program.

Contact Feldman Kieffer for an FLSA compliance review today.