An Ohio-based home care provider has been accused of violating the Fair Labor Standards Act. The U.S. Department of Labor launched an investigation of the business, finding the employer failed to pay minimum wage and overtime to workers, as well as neglecting to maintain proper payroll records.
The DOL filed a complaint in the federal district court asking the owner for back wages and liquidated damages for 15 workers, according to a release from the Wage and Hour Division. The suit alleges that the home support provider misclassified employees as independent contractors, using their job status to deliberately withhold pay for all hours worked. Because of their wrongful designation, these staff members frequently clocked more than 40 hours per week without receiving time and one-half pay as required by FLSA. The lawsuit also claims the business paid some employees on a commission-only basis, which caused them to earn less than minimum wage.
In addition, the employer bounced checks due to lack of sufficient funds, but failed to repay what was owed. The company also required workers to pay for background checks, drug screenings and physicals.
To avoid litigation, employers must correctly classify workers and maintain records of employee time and payroll records. Attendance software can help workplaces comply with FLSA and other legal requirements.
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