Thursday, December 18, 2014

US DOL recovers more than $637K in back wages for employees at facilities providing care for elderly and ill

The U.S. Department of Labor reached an agreement with owners of five Bay-Area facilities who will pay $637,048 in total to 24 employees providing care for the elderly and ill. The amount includes $318,524 in minimum wage and overtime back wages, plus an additional $318,524 in liquidated damages. The facilities are Retirement Plus of San Carlos I; Retirement Plus of San Carlos II; Laurelwood Care Home; Three Sisters Care Home; and Three Sisters Care Home II. The department’s Wage and Hour Division began a two-year investigation of the firms beginning in February 2012 to spot Fair Labor Standards Act violations.

“These workers perform a vital role as caregivers. Some should have earned as much as an additional $300 per week to meet minimum legal requirements. That money can help support a family,” said Susana Blanco, district director for the Wage and Hour Division in San Francisco. “The employer also treated one employee as an independent contractor—a trend that characterizes employees as contractors and denies them basic workplace protections. For vulnerable workers, this case represents a victory in the protection of their rights.”

San Francisco District Office investigators found that the firm paid most employees a weekly salary without regard to hours worked. Entitled to minimum wage and overtime, many affected employees received as little as $5 per hour and worked up to 11 hours per day, five to six days a week. The owners also failed to keep accurate and complete records of employee hours. Additionally, a caregiver was misclassified as an independent contractor and worked long hours without minimum wage and overtime pay.

“In an industry with a substantial record of labor violations and exploitation, these results should warn employers,” said Ruben Rosalez, the division’s regional administrator in San Francisco. “We will hold employers accountable for noncompliance, and we urge workers to contact the department if they believe their rights have been violated.”

Source: DOL

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