Texas Nursing Home’s Paychecks to Staff ‘Bounce’ for Five Weeks
The administrator of a Texas nursing home recently issued statements to a television station regarding its inquiry into complaints reported by employees that the facility’s payroll checks have not been funded and have been “bouncing” when employees deposited or tried to cash them for the last five weeks. The employees would not give their names because they feared losing their jobs.
A local check cashing service employee, who asked to remain anonymous, told reporters that, “No one in town is taking checks (from the facility) anymore. This has been going on for a while.”
The administrator told reporters, “We wired their paychecks directly to them, basically as a direct deposit, and it appears we’ve confirmed their banks received them.” He also said, “We still have a few employees we are working with who do not have bank accounts to work out a way to get their paychecks to them.”
The facility is operated by a New Jersey-based corporation and calls to corporate headquarters were not being returned.
This is not the only facility operated by the corporation where this has happened. In June 2018, another facility reported having the same issue with their paychecks. That facility’s management was assumed in November 2018 by another managing corporation.
Compliance Perspective
Failure to ensure that there are sufficient funds to cover issued employee payroll checks may place a facility in jeopardy of having state and federal authorities take over management of the facility and be considered provision of sub-standard quality of care in violation of state and federal regulations.
Discussion Points:
- Review policies and procedures regarding the state and federal requirements for maintaining adequate staffing to provide all aspects of care for residents. Failure to comply may place a facility at risk if payroll checks and other expenditures are not funded.
- Train managerial staff involved in the financial management of the facility about the serious consequences of having inadequate staffing that may result if payroll is not funded.
- Periodically audit to determine if adequate funds are being provided to cover payroll, supplies, and other expenditures needed to provide the level of care required for residents.
