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Flat rate leads to lump-sum settlement

by on
in Human Resources,Overtime Labor Laws

A federal court has ordered Roseville-based Aspen Nursing Services to pay more than $210,000 in back wages and liquidated damages to 22 employees in Kentucky and Ohio. The company paid employees a flat daily fee regardless of how many hours they worked providing services for the company’s Aspen Community Living division.

The arrangement violated the Fair Labor Standards Act (FLSA) because Aspen Nursing Services failed to ensure employees earned at least the minimum wage. In addition, the daily pay rate did not allow for overtime when employees worked more than 40 hours per week.

Under the settlement, the company must revise its pay practices to comply with the FLSA and refrain from retaliating against any employee who participated in the U.S. Department of Labor’s Wage and Hour Division investigation.

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