An Indiana home health agency that operates two home health facilities violated the Fair Labor Standards Act (FLSA) when it issued workers separate checks at “straight time” for hours worked at each facility. The home health agency should have combined hours worked at each facility and paid employees overtime at a time and one-half rate when they exceeded 40 hours in a week.
Under terms of a consent judgment, the home health agency was ordered to pay $215,859 in overtime back wages and an additional $216,938 in liquidated damages and interest to 171 workers. The federal judge in this case also enjoined the employer from violating the FLSA in the future.
Wage and Hour District Director Patricia Lewis in Indianapolis stated, “When an employer assigns workers to multiple facilities, they must combine all hours worked and pay earned overtime. By failing to do so, they deny workers the wages they have rightfully earned. Home healthcare workers provide their clients with skills that are essential to their well-being and dignity. Their employers have an obligation to compensate these workers all their hard-earned wages.”
Additional information regarding the FLSA and other laws enforced by the Wage and Hour Division can be accessed by contacting the agency’s toll free helpline at 866-4US-WAGE (487-9243). The helpline is confidential and has over 200 languages available to answer calls. Information about the Wage and Hour Division, including a search tool, can be accessed here.
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.
