The U.S. Department of Labor recently filed a lawsuit against the Northridge Health Center in North Ridgeville, Ohio, to reclaim wages that were illegally denied caregivers who worked there. According to an investigation by the Department's Wage and Hour Division, 89 workers were incorrectly classified as exempt employees, which meant they were ineligible for basic benefits like overtime pay.

"One of the most common violations in the residential-care industry is the failure of employers to pay properly for all hours worked," said George Victory, Columbus' district director of the Wage and Hour Division.

The Northridge Health Center has been investigated by the Department of Labor two separate occasions over the previous six years and returned $8,404 in back wages to employee during 2006 and $4,785 to workers in 2008.

"These workers deserve to be paid properly, and the resolution of this case should remind employers that the Labor Department will not hesitate to investigate, and to litigate, if they deny workers their rightful pay," Victory added.

Earlier this year, the Department of Labor proposed changes to the Fair Labor Standards Act that would give home caregivers across the industry rights to these wages. If this movements progresses, healthcare companies might need to  invest in new payroll processing systems that can calculate standard wages and premium pay. 

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