Caring for elderly adults and individuals with disabilities is not only a noble endeavor but also a responsibility that should uphold ethical and legal employment practices. A recent case involving a senior living and care center in Hawaii, serves as a stark reminder that intentional denial of overtime wages can result in significant penalties for employers in the assisted living industry.

Asure’s HR experts help business owners comply with federal, state, and local employment laws. Learn how to protect your business here.

Ensuring Overtime Wages: The Senior Living and Care Center Case

The U.S. Department of Labor recently investigated two residential care facilities in Hawaii. The investigation found that the employers willfully denied overtime wages to 23 caregivers who provide essential care services to older adults and individuals with disabilities.

Intentional Violation of Labor Standards

The employers’ violation of labor standards was deemed willful as they paid straight-time rates to employees for all hours worked, including those exceeding 40 hours in a workweek. This blatant disregard for the Fair Labor Standards Act led to a court-mandated requirement to pay significant amounts in back wages and damages.

The Consequences of Denying Overtime Wages

As a result of their willful violations, the senior living and care centers have been ordered to pay a total of $287,279 in wages and liquidated damages to the affected caregivers. Additionally, a civil penalty of $13,299 has been imposed on the operators for their intentional breach of labor standards.

The Importance of Compliance

This case serves as a reminder to small and midsize business owners in the assisted living industry of the importance of complying with labor laws, especially when it comes to paying overtime wages. It underscores the ethical responsibility to properly compensate employees who dedicate their time and efforts to providing care for vulnerable individuals.

Lessons Learned:

  • Understanding Labor Laws: Familiarize yourself with the labor laws, including the Fair Labor Standards Act, to ensure you are aware of your obligations as an employer.

  • Overtime Compensation: Adhere to the requirement of paying overtime wages at one and a half times the regular rate for hours worked beyond 40 in a workweek

  • Willful Violations Have Consequences: Intentional disregard for labor standards can result in substantial financial penalties and damages.

  • Employee Welfare Matters: Prioritize fair compensation for your employees as a reflection of your commitment to their well-being.

Conclusion

The senior living and care centers case highlights the need for employers in the assisted living industry to uphold the dignity and legal rights of their employees. Ensuring that caregivers receive fair compensation for their dedicated work is not just a legal requirement but also a reflection of the industry’s commitment to ethical employment practices. By prioritizing compliance and treating caregivers with respect, employers can create a safe and thriving work environment that benefits both their employees and the individuals they care for.

Asure’s HR experts help business owners comply with federal, state, and local employment laws. Learn how to protect your business here.

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