Chicago nursing home not paying employees for round-the-clock care

Nearly 300 employees of The Renaissance at South Shore, a Chicago nursing home, have received back pay as part of a $138,000 settlement for unpaid overtime. The Department of Labor's Wage and Hour Division (WHD) performed an investigation that alleged the employer was not paying workers properly for their time and attendance. 

"One of the most common violations in the residential care industry is the failure of employers to properly pay for all hours worked," said Thomas Gauza, the Wage and Hour Division's district director in Chicago. "Caregivers work long hours and often make significant personal sacrifices to provide around-the-clock care for their clients."

This case represents a growing issue throughout the United States. The Fair Labor Standards Act (FLSA), which was introduced in 1938, includes some outdated provisions that do not accurately reflect trends in the healthcare industry.

Last year, Secretary of Labor Hilda D. Solis explained in a blog post that many home healthcare providers are providing round-the-clock assistance to the aged and infirm without receiving the most basic employment benefits - minimum wage and overtime pay. Nursing homes can reduce vulnerability to FLSA violations by installing a payroll processing system that tracks for all hours worked and issued wages accordingly.