On November 22, 2016, Judge Mazzant of the United States District Court for the Eastern District of Texas granted an emergency motion for preliminary injunction which temporarily halts the implement of the Department of Labor's ("DOL's") new federal overtime rule raising salary thresholds to be exempt from overtime. Twenty-one states and fifty private parties had filed suits which were consolidated into the case of State of Nevada, et. al. v. United States Department of Labor, et. al.. The Court's grant of a preliminary injunction preserves the status quo while the court determines the DOL's authority to make its final rule as well as the final rule's validity. While the grant of the preliminary injunction is not permanent, it is certainly a bad omen for DOL's implementation of the rule. It is thought that Judge Mazzant would not have granted a preliminary injunction unless, among other things, he feels that the States have shown a substantial likelihood of succeeding on their underlying claims.
The Long-Term Care Final Rule which revises the requirements of participation in the Medicare and Medicaid programs will become effective on November 28, 2016. As a result of the changes under the Final Rule, providers will need to review their nursing facility admission agreements to ensure that the provisions of the agreement are consistent with the regulatory requirements. In addition to reviewing and updating the admission agreement, providers will also need to review and update existing policies and procedures and/or develop new policies to reflect the changes under the Final Rule. READ MORE - Revisions to Nursing Facility Admission Agreement Due to Changes Under LTC Final Rule.docx
On November 7, 2016, the U.S. District Court for the Northern District of Mississippi granted the motion for preliminary injunction filed by the American Health Care Association (AHCA) and other plaintiffs, staying the November 28, 2016 effective date of the ban on pre-dispute binding arbitration agreements imposed by the Centers for Medicare & Medicaid Services (CMS). CMS has the right to appeal the District Court's decision to the Fifth Circuit Court of Appeals. At this point in time, we have not had confirmation as to whether CMS will invoke its right to an appellate court review of the District Court's ruling.