A recent ruling by the U.S. District Court for the Eastern District of Michigan has mandated that a healthcare business and its owner pay a sum of $95,074 in back wages, liquidated damages, and interest to 34 workers. The order stems from an investigation conducted by the Department of Labor’s Wage and Hour Division, revealing violations of the Fair Labor Standards Act (FLSA).
34 Workers Owed Back Wages, Liquidated Damages and Interest
The investigation highlighted that the Michigan-based home health care services provider had neglected to compensate care workers properly for overtime hours worked from August 1, 2019, to July 31, 2021, failing to pay at least time and a half their regular rate beyond 40 hours per workweek, a direct infringement of the FLSA.
Initially, before the court’s order, a portion of the owed back wages—$31,791—had been settled by the company. As per the consent order, the remaining sum, including $1,225 in interest, is slated for payment by September 20, 2024.
Additional Requirements
As part of the resolution, the healthcare business and its owner are obligated to provide employees with comprehensive information outlining their rights under the FLSA. The court’s directive underscores the necessity for compliance with labor laws to safeguard workers’ rights and fair compensation practices.
Timolin Mitchell, Wage and Hour Deputy Regional Administrator for the Midwest Region emphasized the significance of just compensation for healthcare companions, citing the crucial services they offer and highlighting the importance of recognizing the value of their work.
Conclusion
This case underscores the critical importance for all businesses to understand and abide by wage laws applicable to their employees, ensuring fair payment for hours worked and adhering to overtime regulations.