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In This Issue:

Executive Corner
Featured Article
Public Policy/Advocacy News
Member News

Executive Corner

As the summer ends and the first signs of autumn appear, your HCAOA headquarters staff is busy preparing for the HCAOA Annual Leadership Conference (now less than a month away.) As we have been reporting in the HCAOA Weekly, we are on pace to pass last year's attendance numbers and our exhibit hall is now 80% full! Hotel rooms are filling up, so if you haven't yet made your plans to join us in Kansas City, I urge you register as soon as possible. If that doesn't motivate you to attend the conference, we are including a special article in the Member News section that is sure to inspire you, focusing on our keynote speaker Donald Cooper who will be making an encore appearance at the Leadership Conference this year.

HCAOA Staff News - Michelle Hannon Joins Headquarters Staff

Michelle Hannon is the newest member of the HCAOA staff team, serving as the Coordinator, Administrative Services. Michelle started her tenure with HCAOA in July. As a valuable member of our staff team, Michelle is the voice you hear when you call the headquarters office. She is responsible for overseeing all of the administrative support functions for HCAOA. Before joining HCAOA, Michelle served as the Office Manager for the Bladder Cancer Advocacy Network and prior to that she worked for the North East Regional Board of Dental Examiners, Inc.

In This Issue

Highlighted in this issue of The Voice is our featured article on the HCAOA Membership Survey. Results from this survey will assist the HCAOA to better understand the needs of our members and provide more relevant and timely member benefits. Moreover, the survey results will serve as a precursor to the strategic planning process. In addition, you will also find the latest information on HCAOA's legal challenge to the Department of Labor's Companion Exemption rule and the latest efforts to combat worker misclassification in our Public Policy/Advocacy News section. As mentioned, in our Members News section, we feature an article about keynote speaker and international business coach, Donald Cooper and provide information on how to register for the 2014 HCAOA Leadership Conference. Also in Member News, please see information about the HCAOA Annual Business Meeting and an article on one of HCAOA's newest member benefits, the HCAOA Forum, our new online community.

Featured Article

HCAOA Member Survey Sets the Stage for HCAOA Strategic Planning Process

In the coming days, you will receive a special communication inviting you to participate in the HCAOA Membership Survey. The Membership Survey will assist HCAOA staff and leadership to better understand the needs of our members and to provide more relevant and timely member benefits. Moreover, the survey results will serve as a precursor to the HCAOA strategic planning process. The process is geared to be highly interactive with input based on initial member feedback including comments and results from the Membership Survey. The goal is to picture what the industry can become, and how the strategic goals and activities of the HCAOA will impact on shaping the future of the industry. While the Association's mission, vision and guiding principles define who we are and what we strive to be, the strategic goals and actions define what must be accomplished to realize our vision.

We envision a process where the results of the Membership Survey will serve as the foundation of the Peer to Peer Discussions session to be held on Monday, October 13 at the Annual Leadership Conference. Subsequently, input from the Peer to Peer Discussions will be further refined and included in HCAOA's strategic planning process. The Association's strategic plan sets the course for the organization and ultimately helps to shape the future of the industry. While the HCAOA has undertaken similar processes in the past, strategic planning is an on-going process that requires the plan to be updated. Moreover, continuing updates to the plan are necessary to ensure the plan is representative of the current environment of the industry and provides a method to monitor progress. Stay tuned for an email with your special invitation to participate in the HCAOA Membership Survey.

Public Policy/Advocacy News

Latest on HCAOA Lawsuit against Department of Labor Over Companion Exemption Rule

On September 9, 2014, Federal attorneys from the Departments of Justice and Labor submitted a brief outlining the latest response in support of their Motion to Dismiss. Specifically, DoL attorneys argued that the Secretary of Labor has authority to define the scope of the Fair Labor Standards Act (FLSA) companionship services and live-in domestic service worker exemptions, as explained by the Supreme Court in Long Island Care at Home Ltd. v. Coke. As stated in their response, "In creating these exemptions, Congress granted the Secretary broad general authority to prescribe "rules, regulations, and orders" implementing them, as well as explicit authority to "define and delimit" the scope of the companionship services exemptions." Further, they argue that the Secretary promulgated the regulations at issue in this case through notice-and-comment rulemaking, based on his determination that the existing regulatory provision regarding third party employment in the domestic service context was outdated. Finally, they conclude that because the Secretary filled a statutory gap through notice-and-comment rulemaking and did so in a reasonable manner, the plaintiffs' challenge should fail, and the Court should dismiss Counts I and II of plaintiffs' complaint or grant summary judgment on those Counts in the defendants' favor.

HCAOA had previously submitted a brief in response to an original Motion to Dismiss filed by attorneys representing DoL. Our response among other arguments, outlined the DoL's failure to reconcile the Rule with the legislative history of the FLSA and provide an adequate justification for the Department's reversal of its longstanding enforcement of the FLSA exemptions. The brief emphasized that the DoL has arbitrarily ignored or improperly discounted the facts underlying the prior policy of exempting home care companion and live-in services. Further, we argued that the Rule capriciously undermines the intent of Congress to encourage deinstitutionalization of care, control costs of care, and maintain continuity of care for a longer number of hours each day. Substantial evidence in the record strongly indicates that each of these factors will be adversely impacted by the Rule. We concluded that the "...Court should find that the Department has failed to justify the new Rule with substantial evidence in the record as a whole, and the new Rule must be found to be arbitrary and capricious as a result."

Background

HCAOA is serving as the named plaintiff with two other organizations - the International Franchise Association, and the National Association For Home Care & Hospice in a filed lawsuit against the DoL, seeking declaratory and injunctive relief for the Department's violation of Federal law relative to the Department's issuance of the FLSA companion care exemption final rule. HCAOA affirms that the changes to the FLSA companion care exemption threaten the home care industry's ability to provide quality care to seniors and individuals with disabilities. We anticipate the court will schedule oral arguments as the next step in the proceedings. We will continue to keep you updated as we move forward with the litigation.

$10.2 Million Awarded to Fund Worker Misclassification Detection, Enforcement Activities in 19 States

The DoL recently awarded $10.2 million to 19 states (see chart below) to implement or improve worker misclassification detection and enforcement initiatives. The federal grant awards will enhance states' ability to detect incidents of worker misclassification and protect the integrity of state unemployment insurance trust funds according to the DoL Secretary Thomas E. Perez.

The funds will be used to increase the ability of states to identify instances where employers improperly classify employees as independent contractors or fail to report the wages paid to workers at all. The states that were selected to receive these grants will use the funds for a variety of improvements and initiatives, including enhancing employer audit programs and conducting employer education initiatives. While several states have existing programs designed to reduce worker misclassification, this is the first year that the DoL has awarded grants dedicated to this effort.

The Consolidated Appropriations Act of 2014 authorized this grant funding for "activities to address the misclassification of workers." Under an innovative, "high-performance bonus" program, four states will receive a share of $2 million in additional grant funds due to their high performance or most improved performance in detecting incidents of worker misclassification. The remaining $8,225,183 was distributed to 19 states in competitive grants. The maximum grant available under the competitive grant award process was $500,000.

In addition to grant funding, the U.S. Department of Labor has developed a Worker Misclassification Initiative with a number of states to address this issue. To find out whether your state is participating in this initiative click HERE.

State	Regular	High Performance Bonus	Total
California	$499,792		$499,792
Delaware	$27,672		$27,672
Florida	$31,792		$31,792
Hawaii	$500,000		$500,000
Idaho	$500,000		$500,000
Indiana	$500,000		$500,000
Maryland	$494,600	$400,099	$894,699
Massachusetts	$499,800		$499,800
New Hampshire	$330,468		$330,468
New Jersey	$342,222	$496,399	$838,621
New Mexico	$499,970		$499,970
New York	$500,000		$500,000
Oregon	$500,000		$500,000
South Dakota	$500,000		$500,000
Tennessee	$499,260		$499,260
Texas	$500,000	$775,529	$1,275,529
Utah	$500,000	$327,973	$827,973
Vermont	$500,000		$500,000
Wisconsin	$499,607		$499,607
Totals	$8,225,183	$2,000,000	$10,225,183

FedEx Ruling Draws Further Attention to Worker Misclassification Issue

In a recent court decision with ramifications for businesses operating under an independent contractor system, a panel of judges from the Ninth Circuit Court of Appeals asserted that FedEx maintains control over the work despite operating under an independent contractor model. For more information read the decision HERE. This decision provides further scrutiny with regard to worker misclassification policy at the federal and state level.

Recently, HCAOA endorsed two federal bills that would strengthen the hand of the U.S. Department of Labor and Internal Revenue Service to address misclassification of workers as independent contractors. These bills include the Payroll Fraud Prevention Act of 2013 (S.1687), introduced by Senator Bob Casey (D-PA), and the Fair Playing Field Act of 2013 (S.1706), introduced by Senator Sherrod Brown (D-OH).

Member News

International Business Coach Donald Cooper is back again!

"The single best keynote speaker I have ever seen. Funny, insightful, motivating and creative. Donald is the Canadian "Lewis Black!"

"Excellent session, very good speaker! Highly informative!"

"Exceptional! Exactly what I needed to refocus."

These comments are just a sampling of the numerous testimonials received from members who attended the keynote address presented by International Business Coach, Donald Cooper at the 2013 HCAOA Leadership Conference. Click HERE to watch a clip of Donald's 2013 presentation!

After the overwhelming response to his presentation last year, Donald has been invited to address our members once again with his presentation, "Winning the Talent War!" Review this informative keynote description HERE.

Drawing from his real-life experience as a world-class manufacturer, retailer and business coach, Donald now helps companies rethink and reinvent themselves to create compelling customer value, clarity of purpose and long-term profitability. For his unique business content and compelling presentation style, Donald has been awarded the Certified Speaking Professional (CSP) designation, the highest earned designation in the world of professional speaking and he has been inducted into the Canadian Speaking Hall of Fame. His insights into how to sell more, manage smarter, grow your bottom line and have a life will inform you, challenge you, disturb you, inspire you...and leave you with a new and powerful understanding of your business, your customers and your life!

Don't miss this opportunity to learn from Donald Cooper and many other industry leaders! Register for the 2014 Leadership Conference today!

An Invitation to Attend the HCAOA Annual Business Meeting

HCAOA staff invites you attend the HCAOA Annual Business Meeting that will be conducted as part of the Annual Leadership Conference. The Annual Business Meeting provides members with an opportunity to learn about the "state of the association" and includes reports from President Peter Ross and other members of the HCAOA Board of Directors. In addition, we will conduct Board Elections, where HCAOA members will have the opportunity elect at-large voting members to the Board of Directors (see Candidates below). In addition, the Annual Meeting includes our annual awards presentation including recognition for the HCAOA Caregiver of the Year Award. Register today for the Annual Leadership Conference HERE to participate in this important event.

The following slate of candidates for election have been approved by the HCAOA Nominations Committee and would serve as at-large voting members of the HCAOA Board of Directors:

Mike Rohan, All Trust Home Care

Linda Grigerek, Companions and Homemakers

Kris Frank, Maxim Healthcare

HCAOA Member Forum

Early this summer, HCAOA was pleased to announce the launch of one of our newest member benefits, the HCAOA Member Forum. The Forum is the center of HCAOA's online community and serves as a communication tool that will allow members to ask questions of one another, discuss topics and post articles. To access the Forum, members must log into their online account and navigate to the Members section of the website. To view Forum content consistently, members must login into their account and navigate to the Forum section or simply "subscribe" to the Forum updates. By subscribing to Forum updates, members will receive email notifications when new content is posted.