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Nursing homes misclassified staff, owe $2M in back pay

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in Employment Law,Human Resources

Grand Healthcare System, headquartered in Queens, will pay $2,006,796  to 844 employees in five locations after the company improperly classified the employees as exempt from the Fair Labor Standards Act.

Investigators from the U.S. Department of Labor’s Wage and Hour Division concluded the company misapplied the FLSA’s executive and administrative exemptions to nonexempt employees.

Other FLSA violations included paying employees only for scheduled hours rather than the number of hours they actually worked, failing to pay employees when they worked through meal breaks and docking employees for short rest breaks. The DOL also found that Grand Healthcare failed to include shift differentials in workers’ regular rates of pay when calculating overtime pay and did not maintain accurate time and payroll records.

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