Following an investigation by the Department of Labor's Wage and Hour Division, residential care provider Peaceful Living was found in violation of the Fair Labor Standards Act (FLSA), according to the Hudson Star-Observer. The facility, which is based in Hudson, Wisconsin, has agreed to pay 55 residential caregivers $37,814 in back wages for unpaid overtime.
The investigation revealed Peaceful Living was paying employees flat rates for 24 hour shifts and failing to compensate workers premium pay (time-and-a-half rates) for overtime hours worked. Problems such as this are being addressed by the Department of Labor, which has expressed an interest in amending home healthcare laws to better reflect the current state of the industry. The laws haven't been updated since 1938.
"One of the most common violations in the residential care industry is the failure of employers to pay properly for all hours worked," said Theresa Walls, district director of the Wage and Hour Division in Minneapolis. "Residential caregivers work long hours and often make significant personal sacrifices in order to provide around-the-clock care for their clients."
The Wage and Hour Division plans to continue investigations of residential caregivers it believes could be using unfair payroll practices. Employers can make sure they are in compliance with the FLSA's overtime measures and avoid expensive employee claims by installing a
timeclock capable of catching violations or hiring a payroll processing service.
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