In a groundbreaking class action lawsuit against a New York City home healthcare agency, employees responsible for round-the-clock care of aged and infirm individuals were awarded more than $1 million for unpaid overtime. According to the claims against McMillan's Home Care Agency, employees were regularly expected to work up to 60 hours per week without receiving premium pay for their additional time attendance.

The Fair Labor Standards Act (FLSA) usually guarantees workers minimum wage for all of their hours worked and time-and-a-half rates for any employee attendance past 40 hours a week. This year, the Department of Labor proposed changes to the FLSA that would extend these rights to home healthcare workers, who have been considered exempt since 1974.

If the labor laws are amended, and the home healthcare industry is required to pay workers for overtime, there could be a surge in employee lawsuits to recover these lost wages. In the case of McMillan's Home Care Agency, approximately 1,000 employees will benefit from the joint settlement.

Employers in the industry can protect themselves from violations by staying up-to-date on FLSA regulations and using the latest payroll processing technology.

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