Wednesday, May 14, 2014

Lincoln Rehabilitation Center pays nearly $67,000 in unpaid wages to 138 workers

Lincoln Rehabilitation Center has paid 138 employees $66,983 in unpaid wages because of an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found that the company violated the Fair Labor Standards Act by failing to compensate employees for all hours worked, including pre- and post-shift work, and improperly exempted some employees from overtime requirements. Lincoln Rehabilitation Center is a 140-bed nursing home in Decatur, Ill., managed by Skokie-based YAM Management LLC, which also manages 19 other Illinois nursing home facilities.

“Professionals in the health care industry provide vital services and must be paid as required by law. Receipt of these back wages and current payment in compliance with labor law has a great impact on these workers and their families,” said Norma Cervi, the division’s district director in St. Louis.
“Employers that violate labor laws harm not only workers, but competitors who abide by the law. The Wage and Hour Division is committed to ensuring that employees’ rights are protected, and employers are working on a level playing field.”

Investigators from the division’s St. Louis District Office found that Lincoln Rehabilitation Center failed to calculate time worked by employees properly, resulting in overtime violations. Additionally, salaried positions, such as activity directors and social service directors, were improperly classified as exempt from overtime.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers are required to maintain accurate time and payroll records.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.