Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Blogs
    • AI
    • Deals
    • Layoff Tracker
    • HIMSS 2023
  • Opinion
    • Breaking Bias
    • Commentaries
    • Letters
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - AI and Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Sponsored Video Series - One on One
    • Sponsored Video Series - Checking In with Dan Peres
  • Data & Insights
    • Data & Insights Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Nursing
Sponsored Content Provided By connectRN
This content was created by and paid for by an advertiser. The Crain's editorial department was not involved in the creation of this content.
June 01, 2023 12:00 AM

Why 1099 nurse classification is a risk for healthcare facilities

  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    connectrn

    As we navigate the biggest nursing workforce shortage of our time, staffing challenges continue to be a pressing topic, especially the nuances of clinician classification. Now more than ever, having control over staffing and protecting your community from risk and vulnerability is critical.

    Here’s why:

    Per diem nurses are employees, not independent entrepreneurs.

    In the past few years of overwhelming demand for per diem nurses, many have become lax about paperwork, or have been misinformed by staffing agencies that cut corners in classifying nurses as 1099 contractors.

    Even for the most flexible schedules and short-term assignments, 1099 status is the wrong way to classify nursing professionals. Calling nurses independent contractors is misaligned in that nurses don’t run their own businesses, but it’s also out of compliance with legal and regulatory frameworks.

    The risk to healthcare facilities is real and it can jeopardize your business. Worker misclassification for nurses is not a small detail or a bookkeeping issue; it goes to the heart of how healthcare settings treat employees and keep the doors open.

    Worker misclassification makes facilities vulnerable to lawsuits and fines.

    Labeling clinicians as 1099 contractors has far-reaching, harmful implications on healthcare facilities, as the Department of Labor has begun to take a closer look at misclassification of healthcare workers. In fact, it recently sued a Pennsylvania-based operator of nursing facilities for $19 million of unpaid overtime. If your facility is on the wrong side of this issue, you could be next to get hit with fines and lawsuits.

    Misclassifying nurses as 1099 workers also makes it harder for facilities to run a thriving care setting and may contribute to higher turnover. Which nurses are likely to feel more respected and supported: W2 employees who receive overtime pay and other employer benefits or 1099 contractors who are unprotected by the employer safety net?

    The answer is obvious.

    A recent survey found that 34% said there is a lack of respect for the work they do, and 32% do not feel supported by their employers. Classifying nurses as W2 employees is a simple, win-win way to show nurses that your facility values them and are on their side.

    Bolster your workforce with W2 classification.

    Worker classification for nurses shouldn’t be treated as a debate, a choice, or a risk management issue. This is a matter of legal compliance and simple right and wrong.

    When nurses are classified as 1099 contractors, they don’t qualify for federal minimum wage, overtime pay or workers’ compensation, which only serves to perpetuate harmful aspects of a nurse’s working life that have been exacerbated since the pandemic. With many nurses working over 70 hours a week, they already feel burnt out and financially squeezed.

    When nurses have W2 status, they are part of a larger safety net. They qualify for overtime pay, unemployment insurance, workers comp insurance and other benefits. Their tax withholdings are managed for them throughout the year. Being classified as a 1099 contractor might make a nurse feel like they’re getting “paid extra,” but the risks aren’t worth it – and it’s against the law for facilities. Nursing is an employment relationship, not an independent business relationship between a contractor and a client.

    The evolution of healthcare has been challenging over the past three years. Nurse shortages are our new normal and how we adapt and innovate to create sustainable healthcare environments takes flexibility and collaboration. When clinicians feel safer and more trusted, you will benefit from better employee retention and more profitable business.

    With a shared interest in navigating these challenges, together we can reimagine a healthcare system where nurses and healthcare partners thrive.

    To learn more about building a sustainable staffing model with connectRN, let’s connect.
     


    Sponsored by:
    connectrn
    connectRN is the leading nurse community reimagining a healthcare system where nurses and healthcare partners thrive. Created to provide nurses with flexible work opportunities, and help eradicate the healthcare staffing crisis, connectRN is a trusted advocate and workforce ally for nurses and healthcare partners alike.

    Most Popular
    1
    CMS tries luring providers to revamped Medicare ACOs
    2
    Oregon joins other states in setting ratios for nurse staffing
    3
    Blue Shield CA taps Amazon, Mark Cuban, CVS for new PBM model
    4
    A health innovation hub grows in Lake Nona Medical City
    5
    Hospital-at-home providers push for Medicaid coverage
    Sponsored Content
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Help Center
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HIMSS 2023
    • Opinion
      • Breaking Bias
      • Commentaries
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - AI and Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing