Overtime violations cost Downey nursing firm $654,082 — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Overtime violations cost Downey nursing firm $654,082

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in Human Resources,Overtime Labor Laws

A lawsuit prompted by a U.S. De­­part­­ment of Labor (DOL) investigation has resulted in a court order requiring Extended Health Care Inc. of Downey to pay $654,082 to 108 nurses who alleged they missed out on overtime pay in violation of the Fair Labor Standards Act.

The investigation, conducted by the DOL’s Wage and Hour Division (WHD), found that Extended Health Care paid some employees straight time even when they worked more than 40 hours per week.

The company dispatches nurses to pa­­tients’ homes to provide skilled nursing care.

Investigators alleged that even the company’s longest-tenured employees were paid only time-and-a-quarter for overtime hours instead of time-and-a-half as required by the law. In some cases, the WHD found, employees did receive time-and-a-half, but “only for the hours they worked beyond 80 in the biweekly payroll period rather than for their hours beyond 40 in one week.”

In addition, the WHD determined that Extended Health Care misclassified some employees as independent contractors, failed to make mandatory payroll withholdings and failed to keep accurate wage records.

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