The reason MTSOs are selling out (sm) - anon Posted: Sep 24th, 2016 - 11:53 am
A big reason NEMT and other MTSOs are selling quickly is the risk associated with having ICs and treating them like employees as well as rising minimum wage. It's a huge deal and requires bigger changes that most MTSOs can deal with. (Even the changes for exempt employees (salary) that go into effect Dec 1 of this year. No more calling QA, Leads, and middle management salaried and skimping on the pay. They will be required to clock in and out with OT rates paid for all hours over 40. (And remember, that includes breaks, research, email time and other hours).
NEMT actually may be at risk as they had all ICs, as former NEMT MTs file for UC upon losing their "jobs". Even though NEMT called you an IC, you really were an employee. So this may hit the proverbial fan sooner than later, especially as many will file for UC. Could be the fines and penalties will come from the supposed profit for sale of the company--or even from Nuance eventually. Who knows. But it's a huge risk right now, as MTSOs have accepted contracts (and/or work from Nuance) at rates that do not allow for employee status with payroll taxes and other required benefits (paid breaks, Internet reimbursement in some states, FMLA, paid sick time in some states, workman's comp, UC, etc.). The whole house of cards is about to crash for these MTSOs. Because they've accepted the work at such low rates, they have no choice but to get out. Nuance will take the work, add it to their revenue pile, then move the work offshore--as that's the only place/people who can do this work at such ridiculous rates.
MTSOs are gettin' out while the gettin's good!
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