The U.S. Department of Labor's Wage and Hour Division recently investigated Exceptional Enterprises, an assisted living facility in Tennessee. The agency found the employer was violating minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA). As a result, the employer has been asked to pay 15 employees $151,119 to recover the lost wages.
Investigators found the employer was not properly paying employees for their sleep time. If employees are required to remain on-the-clock for more than 24 hours, they are legally allowed to sleep or perform leisurely activities when they do not have any tasks to perform. Moreover, the FLSA guarantees workers receive at least $7.25 an hour for all of their
employee attendance as well as time-and-a-half rates for any work performed in excess of 40.
"The Labor Department wants to ensure that employees who put in an honest day's work receive an honest day's pay. Health care workers are among the lowest-paid employees in the nation, and this employer profited by paying these vulnerable individuals less than they were legally due under the Fair Labor Standards Act," said Astor Bruhier, district director for the Wage and Hour Division in Jackson, Mississippi.
To ensure employers properly compensate workers, they should read applicable labor laws and install a payroll processing system that calculates pay rates accordingly.
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