The US Department of Labor (DOL) announced that it had recovered $375,649 in back wages and liquidated damages for 806 current and former employees of nursing homes in upstate New York that had denied them overtime pay in violation of federal law. The department’s Wage and Hour Division found that a healthcare provider, which operates nursing homes in upstate New York, violated provisions of the Fair Labor Standards Act (FLSA) when it failed to pay workers time-and-one-half rates for hours over 40 in a workweek.
Specifically, the investigation found that the provider failed to combine hours worked when employees, including certified nursing assistants, licensed practical nurses, and some non-nursing employees, worked at multiple locations in a week. The employer also miscalculated the weighted average when paying overtime and failed to include bonuses and shift differentials in calculating employees’ required rates of pay.
In addition to the back wages and liquidated damages, the provider has paid $69,519 in civil money penalties to the department for their willful and repeated violations. The division identified similar violations in previous investigations of this employer.
“Nursing home employees, including nurses and nursing assistants, provide essential care for patients that helps maintain their dignity and support their ongoing needs. They absolutely deserve the wages they have rightfully earned for their hard work and dedication,” said Wage and Hour Division District Director Michael Milazzo in Albany, New York. “Despite previous experience and knowledge of the law’s requirements, [the provider] has allowed new violations to occur, resulting in costly consequences.”
Compliance Perspective
Issue
The FLSA sets minimum wage, overtime pay, recordkeeping, and youth employment standards for covered employment. Unless exempt, employees must be paid at least the minimum wage and at least one and one-half times their regular rates for overtime hours. Hours worked include all time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace. Employers must keep certain records for each non-exempt worker, including identifying information, hours worked, and wages earned. The law requires this information to be accurate.
Discussion Points
- Regularly review and update your policies and procedures on fair wages, overtime pay eligibility, and recordkeeping to ensure they align with both federal and state regulations. Some states have stricter standards than federal law, so make sure your policies are comprehensive. Include policies on how overtime is calculated, how to handle multi-location work, and how bonuses and shift differentials are factored into pay calculations. Ensure that these policies are clearly documented and accessible.
- Provide training for all staff responsible for determining fair wages, overtime pay eligibility, and recordkeeping. Training should cover accurate time tracking, overtime calculations, and understanding recordkeeping requirements. Conduct training regularly (e.g., annually) or whenever there are significant changes in the law or company policies. Document all training sessions and keep signed documents in each employee’s education file to verify that training has occurred.
- Periodically audit to ensure compliance with minimum wage laws, and that overtime pay eligibility and recordkeeping are accurate and being reported correctly. Document audit results and any corrective actions taken.
*This news alert has been prepared by Med-Net Concepts, LLC for informational purposes only and is not intended to provide legal advice.*
