The US Department of Labor (DOL) has recovered $158,868 in back wages and an equal amount in liquidated damages from a Southern California home care provider that refused to pay overtime to 45 employees, some of whom worked up to 70 hours per week.
An investigation by the DOL’s Wage and Hour Division revealed that the company, which has locations in Indio and Whittier, failed to pay caregivers the required overtime rates for hours worked over 40 in a week. Additionally, investigators found that the employer did not maintain accurate records of hours worked and rates of pay for each employee.
Along with the recovery of unpaid wages and liquidated damages, the division assessed the employer $10,829 in civil money penalties due to the willful nature of the violations.
“We urge all employers in this industry to review their pay practices and respect workers’ right to be paid all of their hard-earned wages,” said Wage and Hour Division Assistant District Director Gayane Aleksanian in West Covina, California. “The US Department of Labor is committed to protecting care workers and will use all available enforcement tools to hold employers accountable for compliance.”
Compliance Perspective
Issue
The Fair Labor standards Act (FLSA) sets minimum wage, overtime pay, recordkeeping, and youth employment standards for covered employment. Unless exempt, employees must be paid at least the minimum wage and at least one and one-half times their regular rates for overtime hours. Hours worked include all time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace. Employers must keep certain records for each non-exempt worker, including identifying information, hours worked, and wages earned. The law requires this information to be accurate.
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 policies on how overtime is calculated, how to handle multi-location work, and how bonuses and shift differentials are factored into pay calculations. Ensure that these policies are clearly documented and accessible.
- Provide training for all staff responsible for determining fair wages, overtime pay eligibility, and recordkeeping. Training should cover accurate time tracking, overtime calculations, and understanding recordkeeping requirements. 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.
- Implement periodic audits to ensure compliance with minimum wage laws and verify that overtime pay eligibility and recordkeeping practices are accurate and properly reported. Document the results of these audits along with any corrective actions taken to address identified issues.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*
