California nursing agency agrees to pay more than $654,000 in back wages

Following an investigation by the Department of Labor's Wage and Hour Division, Extended Healthcare was found in violation of the Fair Labor Standards Act (FLSA) overtime and recordkeeping provisions. The nursing agency has agreed to pay 108 nurses $654,082 in back wages of unpaid overtime employee attendance.

The investigation revealed Extended Healthcare was paying nurses straight-time for any hours worked past 40 in a single workweek, which is in violation of the FLSA. Federal law mandates employees receive time-and-a-half pay for overtime hours worked.

"All employees deserve full and fair compensation for all hours worked," said Priscilla Garcia, director of the Wage and Hour Division in West Covina, California. "This action to restore more than half a million dollars in back wages reflects the department’s commitment to protect the overtime rights of these workers."

The Department of Labor recently announced it plans to revisit home healthcare aids, especially those providing companionship services. Originally, those workers were exempt under the FLSA, but changes in the industry indicate employees might be losing out on the compensation they deserve. Currently, the DOL requires home healthcare employers pay nurses minimum wage and overtime if they spend more than 20 percent of their hours worked performing household tasks or other regulated criteria.