Investigations by the US Department of Labor’s Wage and Hour Michigan Division have found that two healthcare facilities violated the Fair Labor Standards Act (FLSA). A total of $259,647 has been recovered for 330 employees from the two employers.
At a long-term care facility located in Michigan, the US Department of Labor’s Wage and Hour Division discovered that the facility paid its employees overtime after they worked 12 hours per day instead of after 8 hours in a day or 80 hours in a two-week pay period, whichever is greater. This violation of the FLSA’s overtime requirements led to the recovery of $235,742 for 305 workers at the long-term care facility.
At a home care company also located in Michigan, the US Department of Labor’s Wage and Hour Division discovered during their investigation that this employer paid straight time after 40 hours in a workweek. Additionally, the home care company did not count time traveling between worksites as hours worked or compensate employees for their travel time. The two violations of the FLSA led to the recovery of $23,905 for 26 home care employees.
Wage and Hour Division District Director Mary O’Rourke in Grand Rapids Michigan stated, “Failure to pay overtime accurately is a common violation, especially in healthcare. These practices can affect an employer’s ability to recruit and retain needed workers. When workers are not paid the wages they have earned, especially under the stresses caused by the pandemic, they may look for work elsewhere.”
A Bureau of Labor Statistics report published in December 2021 stated that 679,000 healthcare and social services workers left their positions, while it is projected that by 2030 the healthcare industry will add 2.6 million new jobs. O’Rourke went on to state, “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 U.S. Department of Labor to prevent costly violations and be able to compete as an employer.”
Compliance Perspective
Issue
All employers are required to follow the rules of the Fair Labor Standards Act. Overtime must be paid to employers after 40 hours worked in a workweek, and time traveling between work sites must be counted in hours worked in a workweek. Violations of the Fair Labor Standards Act can result in fines and other penalties.
Discussion Points
- Review your policies and procedures on overtime pay eligibility and travel time reimbursement between worksites, if applicable. Update your policies as needed.
- Train all staff who have responsibility in determining overtime pay eligibility and travel reimbursement to ensure their knowledge of your policies and procedures is accurate, and that they comply with the requirements. Document that these trainings occurred, and file each signed document in the employee’s education file.
- Periodically audit to ensure that overtime hours worked and any travel time between worksites are accurately reimbursed.
