Sears Methodist Retirement Systems to pay workers $168,000 in back wages
The U.S. Department of Labor's Wage and Hour division recently found Sears Methodist Retirement System Inc. in violation of the Fair Labor Standards Act (FLSA) minimum wage, overtime and recordkeeping provisions. The Abilene, Texas- based company has agreed to pay $167,805 in back wages to 318 vocational workers and aides.
Investigators found that the employer was improperly calculating employee attendance to avoid paying workers the wages they were owed. The company was deducting one hour from workers' time and attendance records to account for meal breaks, but employees only took 30-minutes for lunch. Because Sears Methodist Retirement Systems was deducting that time from payroll, many employees were working more than 40 hours in a workweek without received overtime pay.
"This company took advantage of its employees by not paying them for all hours worked," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "Health care workers are among the lowest-paid employees in the nation, and this employer profited by paying these vulnerable employees less than they were legally due under the Fair Labor Standards Act."
Healthcare facilities can avoid owing workers back wages by properly paying them for all hours worked. To improve their payroll efforts, employers can install a new timeclock, which can be programmed to properly factor in break times and various pay rates.
Investigators found that the employer was improperly calculating employee attendance to avoid paying workers the wages they were owed. The company was deducting one hour from workers' time and attendance records to account for meal breaks, but employees only took 30-minutes for lunch. Because Sears Methodist Retirement Systems was deducting that time from payroll, many employees were working more than 40 hours in a workweek without received overtime pay.
"This company took advantage of its employees by not paying them for all hours worked," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "Health care workers are among the lowest-paid employees in the nation, and this employer profited by paying these vulnerable employees less than they were legally due under the Fair Labor Standards Act."
Healthcare facilities can avoid owing workers back wages by properly paying them for all hours worked. To improve their payroll efforts, employers can install a new timeclock, which can be programmed to properly factor in break times and various pay rates.
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