In recent news, the Department of Labor (DOL) has recovered a significant sum of $47,000 in back wages and damages for 10 home care workers who fell victim to their employer’s repeated failure to pay overtime. The company in question, an elderly home care business in California, has once again found itself on the wrong side of the law, intentionally depriving its workers of their rightful earnings.
10 Home Care Workers Failed to be Paid Overtime
The investigation conducted by the DOL’s Wage and Hour Division revealed that elderly home care business had willfully violated the Fair Labor Standards Act by denying its employees the overtime pay they had rightfully earned. This is not the first time the company has faced such allegations. In 2016, following a federal investigation and litigation, they were required to pay $425,000 in wages and damages to 26 employees for similar misconduct.
More recently, investigators discovered that despite being fully aware of the legal overtime pay requirements, the company chose to flout the law. The elderly home care business paid its workers for their first 80 hours per pay period at the correct rate through payroll. However, when it came to overtime hours worked, they paid at regular rates, often resorting to personal checks or cash payments.
Severe Consequences Ahead
The DOL has recovered $23,579 in unpaid overtime wages for the 10 affected employees, in addition to $23,579 in damages for the same employees. On top of this, the employer is now facing civil money penalties of $8,310.
Susana Blanco, the District Director of the Wage and Hour Division in California, emphasized the importance of holding employers accountable for such violations. She stated, “This case clearly shows we will hold employers accountable when they try to steal from the people who allow their businesses to flourish. Those who willfully and repeatedly steal from their workers can face litigation and the possibility of losing their businesses.”
It’s crucial for business owners, especially those running small and midsize businesses, to understand the legal obligations regarding employee wages and overtime. The Fair Labor Standards Act (FLSA) mandates that most employees in the United States must be paid at least the federal minimum wage for all hours worked, and overtime pay at not less than one and a half times the regular rate of pay for hours worked beyond 40 in a workweek.
To protect your business and ensure you are in compliance with employment laws, it’s vital to stay informed about workers’ rights and the specific requirements of the FLSA. The DOL offers resources and tools to help both employers and employees understand these regulations. You can utilize their search tool to check if you or your workers may be owed back wages collected by the division.
If you have questions or concerns, you can reach out to the Wage and Hour Division for assistance. They provide confidential support for employers and workers alike, and their toll-free helpline at 866-4US-WAGE (487-9243) is available in over 200 languages. Additionally, the DOL offers a free Timesheet App for Android devices, available in English and Spanish, which can help you track work hours and pay accurately.
Conclusion
The case of the elderly home care business serves as a stark reminder of the consequences businesses can face when they violate employment laws. Small and midsize business owners must prioritize compliance with the FLSA and other labor regulations to avoid costly penalties and litigation. Remember that the DOL is here to help, offering valuable resources and support to ensure that both workers and employers are treated fairly and in accordance with the law.