The US Department of Labor (DOL) announced it had obtained a consent judgment against a Pennsylvania home healthcare agency and its owner for deliberately failing to pay employees the overtime wages they were legally owed under the Fair Labor Standards Act (FLSA).
Following a filing by the department’s Office of the Solicitor in the US District Court for the Eastern District of Pennsylvania, the judgment confirms the findings of an investigation by the Wage and Hour Division. The investigation determined that the agency owed 62 workers $414,351 in back wages and liquidated damages for violating FLSA overtime provisions. The court also ordered the agency and its owner to pay an additional $5,649 in civil money penalties due to the willful nature of the violations.
Before the department sought the consent judgment, the agency had already paid $198,591 in back wages and $9,341 in liquidated damages to the affected workers. Under the court’s order, the employer is now required to pay the remaining $212,067 in back wages and liquidated damages, as well as the civil penalties of $5,649 to the department.
Compliance Perspective
Issue
The FLSA requires most employees in the US to be paid at least the federal minimum wage for all hours worked and overtime pay at a rate of not less than time and a half their regular rate for all hours worked over 40 in a workweek. Employers are also required to maintain accurate records for each non-exempt employee, including identifying information, hours worked, and wages earned. Accurate and up-to-date records are essential for compliance with the law, and failure to do so can lead to costly penalties and lawsuits.
Discussion Points
- Regularly review and update your policies and procedures on fair wages, overtime pay eligibility, and recordkeeping to ensure they align with both federal and state regulations. Some states have stricter standards than federal law, so make sure your policies are comprehensive. Include clear guidelines on how overtime is calculated, how to handle multi-location work, and how bonuses and shift differentials are factored into pay calculations. Ensure these policies are well-documented, easily accessible to staff, and clearly communicated.
- Provide training for staff responsible for determining fair wages, overtime pay eligibility, and recordkeeping. Training should cover accurate time tracking, overtime calculations, and the requirements for maintaining proper records. Conduct training regularly (e.g., annually) or whenever there are significant changes in the law or company policies. Document all training sessions and keep signed documents in each employee’s education file to verify that training has taken place.
- Conduct periodic audits to ensure compliance with minimum wage laws, verify that overtime pay eligibility is properly applied, and confirm that recordkeeping practices are accurate and up to date. Keep thorough documentation of the audit results, including any corrective actions taken to address issues identified during the audit.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*
