Four federal investigations have led to the recovery of $383,183 in back wages and liquidated damages for 46 workers of a Pennsylvania homecare service provider who denied them their full wages by not paying them overtime when the law required.
The US Department of Labor’s Wage and Hour Division conducted four investigations into the homecare service provider. It was discovered during the investigations that the employer neglected to pay overtime as required to workers at four of the homecare service locations. Not paying overtime for hours worked over 40 hours in a workweek is a violation of the Fair Labor Standards Act. To resolve the violations, the provider paid $191,591.71 in back wages and an equal amount in liquidated damages to the affected workers. A fifth investigation conducted at another location found no violations.
The Bureau of Labor Statistics found, in December 2021, that 716,000 healthcare and social assistance workers left their positions. Additionally, the demand for healthcare services is projected to grow 33 percent from 2020 to 2030, which is faster than the average for all occupations. This will add about 1.1 million new jobs. These trends indicate that healthcare employers will find it more difficult to recruit and retain without being highly competitive and ensuring compliance with laws governing workers’ rights.
The Pittsburgh Wage and Hour Division District Director, John DuMont, stated, “Healthcare workers are in great demand and facing record burnout. Healthcare employers whose pay practices comply with the law have a competitive advantage when it comes to attracting and retaining workers. Employers unsure about their legal obligations should contact the US Department of Labor to prevent costly violations and ensure they are able to compete as an employer.”
Compliance Perspective
Issue
The Fair Labor Standards Act must be adhered to at all times within your facility. It is imperative that all employees who are responsible for determining rates of pay, deciding overtime pay eligibility, and performing recordkeeping of wages are well trained in the Fair Labor Standards Act provisions. When overtime is required within your facility, all federal laws must be adhered to for the employee working overtime. Violations of the Act can result in fines and other penalties and sanctions.
Discussion Points
- Review your policies and procedures on overtime pay and recordkeeping. Update your policies as needed.
- Train all staff on their responsibility to accurately report their hours worked. Provide specific training for staff who have responsibility for ensuring accuracy of overtime pay and recordkeeping, and ensure they demonstrate competence with the requirements of your policy and procedures and the FLSA. Document that these trainings occurred, and file each signed document in the employee’s education file.
- Periodically audit to ensure that overtime pay and the recordkeeping of hours worked 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.*
