Residential care businesses in North Carolina under scrutiny by DOL

The residential care, or home healthcare, industry has recently drawn the interest of the United States Department of Labor where basic employee rights are concerned.

Many individuals in the field work around the clock to provide assistance to the elderly and infirm, but some feel they do not receive wages that reflect the significance of their commitment. The healthcare sector is facing a future in which it anticipates growing demands as members of the Baby Boomer generation age and will need affordable care options. Employers have said they are not certain they could continue to offer services if they have to increase payroll costs.

At the same time, the DOL's Wage and Hour Division (WHD) is continually investigating residential care companies to ensure they are paying employees all the wages they have rightfully earned for their time and attendance.

In a demonstration of its work in the sector, the DOL recently announced it discovered widespread labor rights violations in North Carolina following 200 investigations. Compliance issues included failure to pay overtime for all hours worked, illegal deductions for sleep time on shifts shorter than 24 hours and required uniform purchases that caused employee's wages to fall below minimum wage.