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Compensation Caps Rule Finalized

Client Alert | less than 1 min read | 11.02.16

On September 30, 2016, a more than two-year-old interim rule on the allowable cost limits of contractor and subcontractor employee compensation became final. Under this rule, which "applies to costs incurred on contracts award on or after June 24, 2014," compensation costs are capped at $487,000 (adjusted annually in accordance with the Employment Cost Index), though agencies may establish narrow exceptions for "scientists, engineers, or other specialists."

Insights

Client Alert | 8 min read | 03.05.26

Fifth Circuit Decision in Health Care Fraud Case Highlights Importance of Careful Drafting in Civil RICO Complaints

A recent decision by the United States Court of Appeals for the Fifth Circuit, Farmers Texas County Mutual Insurance Co. v. 1st Choice Accident & Injury, LLC, No. 24-20275 (5th Cir. Feb. 24, 2026), offers important lessons for health care payors and other potential plaintiffs considering civil claims under the federal Racketeer Influenced and Corrupt Organizations Act (RICO). Although the Fifth Circuit’s decision focused on a procedural issue, the underlying case turned on a fundamental pleading failure: the plaintiff insurers did not adequately describe the fraudulent network they were suing as a RICO “enterprise.” The result was dismissal of a $14 million fraud case....