The US Department of Labor (DOL) announced on August 22, 2023, that it had obtained a consent order from a federal judge that orders the owner and administrator of an Illinois home care and home healthcare provider to pay $324,049 in back wages and liquidated damages as part of the department’s effort to recover overtime denied to 159 healthcare workers.
The company provides home care and home healthcare services and is based in Westchester, with offices in Aurora, Chicago, Evergreen Park, and Joliet. From October 2020 through October 2022, investigators determined that both the company’s owner and the administrator did not keep accurate records of hours worked. Rather than paying overtime as required by the Fair Labor Standards Act (FLSA), the company paid the affected workers straight-time wages for all hours worked.
Following a two-year review of pay practices of the company by the DOL’s Wage and Hour Division, the action was filed in the US District Court for the Northern District of Illinois, Eastern Division, on July 31, 2023. Shortly thereafter, the DOL’s Office of the Solicitor in Chicago was able to obtain a consent order resolving all issues, including payment of $324,049 in back wages and liquidated damages, and an injunction for future compliance.
“Employers must follow all applicable wage laws for their industry. The Wage and Hour Division encourages both employers and workers with questions on federal wage laws to contact us for clarification,” said Wage and Hour Division District Director Tom Gauza.
Compliance Perspective
Issue
The FLSA sets minimum wage, overtime pay, recordkeeping, and youth employment standards for employment subject to its provisions. Unless exempt, covered employees must be paid at least the minimum wage and not less than one and one-half times their regular rates of pay for overtime hours worked. Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace. Every covered employer must keep certain records for each non-exempt worker. The Act requires no particular form for the records, but does require that the records include certain identifying information about the employee and data about the hours worked and the wages earned. The law requires this information to be accurate.
Discussion Points
- Review your policies and procedures on fair wages, overtime pay eligibility, and recordkeeping. Update if needed.
- Train all staff with responsibility for determining fair wages, overtime pay eligibility, and recordkeeping so that they are knowledgeable about your policies and procedures to ensure they comply with federal and state requirements. Document that these trainings occurred, and file each signed document in the employee’s education file.
- Periodically audit to ensure compliance with minimum wage laws, and that overtime pay eligibility and recordkeeping are accurate and being reported correctly.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
