The US District Court for the Middle District of Pennsylvania has approved a consent judgment ordering two central Pennsylvania nursing facilities to pay a total of $256,684 in back wages and an equal amount in liquidated damages to 231 nursing staff for FLSA violations found during a federal review of the employer’s pay practices. The consent judgment resolves the complaint filed by the US Department of Labor alleging overtime and recordkeeping violations. During the course of the litigation the employers consented to a judgment requiring them to pay a total of $513,368 to the affected employees. The litigation and judgment follows an investigation by the department’s Wage and Hour Division that revealed Spring Creek SNF LLC (operator of Spring Creek Rehab and Nursing Center in Harrisburg) and Franklin Center OPCO LLC (operator of Laurel Lakes Rehab and Wellness Center in Chambersburg) engaged in pay practices that violated the Fair Labor Standards Act.
Specifically, the employers paid non-discretionary bonuses to nursing staff but failed to include the incentives in their rate of pay when calculating overtime rates. The employers paid the bonuses for working particular shifts, picking up extra shifts, and providing needed support during the pandemic. The investigation also revealed that the employers failed to maintain proper records of hours worked. “Our investigation found a common and costly error employers make, the failure to include non-discretionary bonuses in an employee’s regular rate of pay when calculating overtime rates,” explained Wage and Hour District Director Alfonso Gristina in Wilkes-Barre, Pennsylvania. “The Wage and Hour Division encourages employers to use the online tools and assistance we offer to avoid compliance issues, and reminds workers that they can contact us with questions about their wages and rates of pay.” In addition to approving the consent judgment and ordering payment of $513,368, the court enjoined the employers from future FLSA violations.
