A Michigan federal court has ordered the owner of a Michigan assisted living facility (ALF) to attend training on federal anti-retaliation regulations and to pay back wages and damages. The owner had allegedly threatened to fire three employees after she suspected they cooperated with a US Department of Labor (DOL) investigation.
On Dec. 11, 2023, District Judge Jane M. Beckering of the Western District of Michigan, Southern Division in Grand Rapids, issued the consent judgment and order requiring the ALF and its owner to pay $16,500 in back wages and liquidated damages to the three affected former employees. The order also requires the ALF to display a fact sheet about the Fair Labor Standards Act’s (FLSA) anti-retaliation provisions and to distribute it to current and future employees. The ALF must also provide neutral job references for the former employees.
The action follows a February 2023 lawsuit filed by the Department in relation to its Wage and Hour Division’s findings that, after the Division reviewed 18 months of the ALF’s pay practices, the owner regularly threatened termination and tried to identify employees she believed had cooperated with investigators. After one of the employees resigned, the owner contacted their prospective employer and made claims of the employee’s misconduct at the ALF.
The Division’s review of the ALF’s payroll records from Aug. 16, 2020, through Dec. 12, 2021, found the company and its owner failed to pay the affected workers for breaks not taken because of work demands. By doing so, the employer violated the FLSA’s overtime provisions.
An earlier, Jan. 17, 2023, consent judgment issued by the federal court in Grand Rapids required the owner and the ALF to pay $15,238 in back wages and damages to six of the ALF’s workers. The owner has made the payments.
Compliance Perspective
Issue
The FLSA’s anti-retaliation clause forbids any person from terminating or in any other manner discriminating against any employee because of such employee’s protected activities, including filing or cooperating with an investigation of the Wage and Hour Division. Employees have the right to speak freely with investigators, attorneys, or other officials from the DOL during an investigation.
Discussion Points
- Review your policies and procedures on nonretaliation and the prohibited firing of or other negative actions against any employee in retaliation for reporting concerns or cooperating in investigations.
- Ensure that staff are aware of your nonretaliation policies and the steps they should take if they suspect wrongdoing, including the use of the anonymous Hotline to report incidents against themselves or their coworkers. Also ensure that staff know what to do during an investigation and that they should cooperate with investigators. Document that these trainings occurred, and file each signed document in the employee’s education file.
- Periodically audit staff understanding to ensure that they are aware of your policy of nonretaliation in the workplace and how to report any concerns. Review reports received to ensure they were addressed properly in a timely manner.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
