{"id":3771,"date":"2022-01-11T22:06:24","date_gmt":"2022-01-11T22:06:24","guid":{"rendered":"https:\/\/melodybenefits.com\/?p=3771"},"modified":"2023-08-18T15:06:43","modified_gmt":"2023-08-18T15:06:43","slug":"20-21-ny-state-budget-wage-parity","status":"publish","type":"post","link":"https:\/\/melodybenefits.com\/20-21-ny-state-budget-wage-parity\/","title":{"rendered":"20-21 NY State Budget, Wage Parity, and You"},"content":{"rendered":"

\u201cEvery few years, there\u2019s talk about home healthcare agency owners having to sell their businesses because they can\u2019t make money,\u201d says Mr. Chaskie Rosenberg, Melody Benefits\u2019 founder. \u201cBut it doesn\u2019t happen.\u201d<\/span><\/p>\n

Chaskie has been in business since 1997, so he knows a thing or two about the home health care industry<\/a>. We reached out to him for his take on the amendments to wage parity law in the 20-21 New York State Budget.<\/span><\/p>\n

But first, some background:<\/span><\/p>\n

 <\/p>\n

Wage parity benefits<\/b><\/h2>\n

New York\u2019s Wage Parity Law<\/a> sets minimum compensation rates for Medicaid-paid HHAs (home healthcare aides) in New York City and Nassau, Suffolk, and Westchester counties<\/span>.<\/b><\/p>\n

The \u201cminimum total compensation\u201d has two parts: the base wage and the wage parity benefits. The base wage is always cash wages, while the second part can be cash wages OR employee benefits, such as health, education, or pension<\/a>.<\/span><\/p>\n

Current wage parity rates stand at:<\/span><\/p>\n

 <\/p>\n\n\n\n\n\n
\u00a0<\/span><\/td>\nBase Pay<\/span><\/p>\n

(per hour)<\/span><\/td>\n

Current Required Wage Parity Benefits<\/span><\/p>\n

(per hour)<\/span><\/td>\n<\/tr>\n

New York City<\/span><\/td>\n$15<\/span><\/td>\n$4.09<\/span><\/td>\n<\/tr>\n
Nassau, Suffolk & Westchester counties<\/span><\/td>\n$15<\/span><\/td>\n$3.22<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

When Governor Andrew Cuomo signed the <\/span>Home Care Worker Wage Parity law<\/span><\/a> in 2011, the state wanted to ensure a living wage for its chronically underpaid HHAs. However, as years went by, some aides still reported not seeing benefits or fair compensation.<\/span><\/p>\n

Those reports led to an investigation, which eventually led to significant amendments to the Wage Parity Law.<\/span><\/p>\n

\u201cThere were allegations that companies were shortchanging employees and pocketing the money,\u201d Chaskie adds. \u201cIn response, the government tightened the screws on wage parity.\u201d\u00a0<\/span><\/p>\n

The <\/b>20-21 New York State Budget<\/b><\/a> closes loopholes and forces greater transparency in wage parity reporting. It amends wage parity laws in four ways:<\/b><\/p>\n

    \n
  1. Restricts certain distributions of wage parity funds<\/span><\/li>\n
  2. Expands certification requirements<\/span><\/li>\n
  3. Mandates updates to WTPA Notices and Wage Statements<\/span><\/li>\n
  4. Imposes fines and criminal penalties for non-compliance<\/span><\/li>\n<\/ol>\n

     <\/p>\n

    Let\u2019s look at these changes one by one.<\/span><\/p>\n

     <\/p>\n

    1. Restrictions on distributions of funds<\/b><\/h2>\n

    The amendments state that \u201cno portion of the dollars spent or to be spent to satisfy the wage or benefit portion\u201d can go back to the agency \u201cas a refund, dividend, profit, or in any other manner.\u201d\u00a0<\/span><\/p>\n

    This would include returning any \u201cunused benefits\u201d to a home healthcare agency<\/a>.\u00a0 Wage parity funds can only go to the home health care aides.\u00a0\u00a0<\/span><\/p>\n

     <\/p>\n

    2. Expanded certification requirements<\/b><\/h2>\n

    Many home health care agencies provide services under contract with a CHHA (certified home health agency), LTHHCP (long term home health care program), or MCP (managed care plan).<\/span><\/p>\n

    With their contract, agencies must now submit:<\/span><\/p>\n