A Delaware based healthcare service provider has paid $327,848 in back wages to 223 employees after the U.S. Department of Labor’s Wage and Hour Division found that the company violated the Fair Labor Standards Act (FSLA) overtime and child labor requirements.
It was determined that the Delaware based healthcare service provider paid some employees flat salaries regardless of the number of hours they worked each week. This resulted in the employer failing to pay overtime to those employees when they worked more than 40 hours in a workweek.
Also, investigators found that the healthcare service provider violated overtime requirements when they failed to pay employees for time they spent traveling between clients’ locations during the workday. In addition, the employer failed to include employee bonuses in their calculation when determining worker’s overtime rates. This exclusion resulted in the employer paying overtime at rates lower than those required by law. Additionally, the employer failed to total hours employees worked at different rates of pay within the workweek when determining when overtime was due.
It was also determined that the employer violated the FLSA’s child labor requirements by employing a minor under age 15 during school hours for more than 3 hours on a school day, and for more than 18 hours during a school week.
Further information on the Department of Labor’s federal wage and child labor laws can be accessed at WHD | U.S. Department of Labor (dol.gov).
Issue:
The Fair Labor Standards Act must be adhered to at all times within your facility. It is imperative that all employees who are responsible for determining rates of pay, deciding overtime pay eligibility, and performing recordkeeping of wages are well trained in the Fair Labor Standards Act. When employing minors within your facility, it is critical that all federal laws are adhered to for the working minor. Violations of the Act can result in fines and other penalties.
Discussion Points:
- Review your policies and procedures on fair wages, overtime pay eligibility, and recordkeeping. Also review your policy and procedure for employing minors. Update your policies as needed.
- Train all staff who have responsibility for ensuring fair wages, overtime pay eligibility, and recordkeeping so that they are knowledgeable about your policy and procedures to ensure they comply with the requirements. Train all staff who have responsibility for supervising and scheduling minors about the requirements that must be met when you employ minors in your setting. Document that these trainings occurred, and file each signed document in the employee’s education file.
- Periodically audit to ensure that fair wages, overtime pay eligibility, and the recordkeeping of hours worked are accurate and being reported correctly. Also, when employing minors, ensure that all employment requirements and limitations on hours worked are followed.
