Extended Health Care Private Duty Nursing, a Los Angeles-area home nursing agency, has agreed to pay $654,082 to settle a Fair Labor Standards Act complaint that followed a federal probe into its pay practices.
A U.S. Department of Labor Wage and Hour Division (WHD) investigation revealed the company had paid some of its employees “straight time” even when their hours exceeded 40 per week. Federal investigators said that even some of the company’s longest-tenured employees received only time and one-quarter for their overtime hours.
Some employees did receive overtime at the required rate of time-and-one-half—but only if they worked more than 80 hours in a biweekly payroll period.
The investigation also determined the company misclassified some employees as independent contractors. In addition, EHC faced record-keeping violations.
In all, 108 nurses will recover back pay under the settlement agreement.
Note: The IRS and WHD are taking a close look at independent contractor classification issues. Have your attorney regularly evaluate your independent contractor relationships to ensure they comply with the law.