Section 388-835-0465. How does DSHS define owner or relative compensation?

(1) DSHS limits the total compensation of an owner or an owner's relative to the ordinary compensation for necessary services actually performed.

(a) Compensation is ordinary if it is the amount usually paid for comparable services in a comparable facility to an unrelated employee, and does not exceed limits established in this chapter.

(b) A service is necessary if it is related to resident care and training and would have to be performed by another person if the owner or relative did not perform it.

(2) A provider, in maintaining customary time records adequate for audit, must include time records for owners and relatives receiving compensation. These records must document how compensated time was spent performing necessary services.

(3) For purposes of this section, if the provider is a corporation, "owner" includes all corporate officers and directors.

[Statutory Authority: RCW 71A.20.140. WSR 01-10-013, § 388-835-0465, filed 4/20/01, effective 5/21/01.]

RCW 71A.20.140. WSR 01-10-013, § 388-835-0465, filed 4/20/01, effective 5/21/01.