A federal court issued an order for the owner of a Michigan senior home care services company to be imprisoned if she continues to ignore a March 2023 federal court order to provide US Department of Labor (DOL) investigators with time and pay records. The owner’s company serves the greater Detroit area and provides home care staffing needs to assist seniors and others with limited mobility to live independently in their homes by providing home care services.
The owner has been in contempt of court since September 27, 2023, and is assessed $250 for each day that she refuses to comply.
On November 28, 2023, US District Judge Matthew F. Leitman of the Eastern District of Michigan directed the US Marshals Service to arrest the owner. The arrest warrant issued by the court orders that the owner be held until she cooperates.
The action is the latest step in litigation filed by the Department in federal court in November 2022 after the owner refused to comply repeatedly with the Department’s Wage and Hour Division requests for documents needed for an investigation opened in 2022. The court ordered the owner and her company to comply with the Department’s administrative subpoena on March 15, 2023.
“The court has upheld the US Department of Labor’s authority to investigate and obtain information about wages, hours, and other employment practices and question employees to determine if an employer is complying with federal law. The court has ordered [the owner] confined until she complies with the court’s orders and produces the documents that will allow the Department to complete its compliance review,” said Regional Solicitor of Labor Christine Heri in Chicago. “Complying with administrative subpoenas issued by the Department is not optional, and the Department will pursue all avenues to enforce the law.”
“The opening of a Wage and Hour Division investigation does not mean we will find violations. By refusing to cooperate, [the owner] now faces imprisonment,” said Regional Wage and Hour Administrator Michael Lazzeri in Chicago. “Our investigation of [the company] is part of our broader focus on the home care staffing industry — one in which we often identify violations — to protect the rights of women and people in marginalized communities employed in the industry who depend on every dollar they earn.”
Compliance Perspective
Issue
The DOL Wage and Hour Division (WHD) is responsible for enforcing federal labor laws, including the Fair Labor Standards Act (FLSA). If you are facing an investigation by the WHD, here are some steps you can take to comply with the investigation:
- Establish a response team ready to handle a DOL investigation, should one arise. Designate an individual who is qualified to meet with the DOL investigator and manage the audit. You may also wish to designate a backup in case this individual is unavailable.
- Provide the investigator with the requested documents and information in a timely manner. If you are unable to provide the requested information, be sure to communicate this to the investigator and provide an explanation.
- Cooperate with the investigator throughout the investigation process. This includes providing access to your workplace and employees, as well as answering any questions the investigator may have.
Discussion Points
- Review your policies and procedures on fair wages, overtime pay eligibility, and recordkeeping. Also review your policies and procedures for cooperating in investigations. Update if needed.
- Train all staff with responsibility for determining fair wages, overtime pay eligibility, and recordkeeping so that they are knowledgeable about your policies and procedures to ensure they comply with federal and state requirements. Ensure that staff are aware of your nonretaliation policies and the steps they should take if they suspect wrongdoing, including the use of the anonymous Hotline to report incidents against themselves or their coworkers. Also ensure that staff know what to do during an investigation and that they should cooperate with investigators. Document that these trainings occurred, and file each signed document in the employee’s education file.
- Periodically audit to ensure compliance with minimum wage laws, and that overtime pay eligibility and recordkeeping are accurate and being reported correctly. Also audit staff understanding to ensure that they know what to do during an investigation.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
