Violations found in childcare center result in $41,000 in back pay
The Department of Labor's Wage and Hour Division is cracking down on childcare providers to weed out employers who are violating the Fair Labor Standards Act (FLSA). A recent investigation of Denver-based Creme de la Creme, a nationwide childcare provider, revealed systematic noncompliance involving overtime pay and recordkeeping standards.
Specifically, the employer was not paying employees properly for their time and attendance beyond 40 hours. The FLSA guarantees employees receive at least time-and-a-half their standard wages if they work past that cap during a standard pay period. In addition, the childcare provider recruited employees to perform extracurricular work, teaching children to play soccer and tennis at the facility. However, they were classified as independent contractors rather than employees for that time worked, and did not receive the proper wages for their extra employee attendance.
Throughout the investigation, the division discovered violations in 21 facilities across Colorado, Texas, Kansas, Georgia, New Jersey, Virginia, Illinois and Ohio. To rectify these payroll issues, Creme de la Creme has paid 354 employees $41,440 in back wages.
This focus on childcare providers is part of an overarching effort to ensure employees in the industry receive the wages they are rightfully owed. Childcare employers can take this incident as an opportunity to clean up any payroll practices that might not be in compliance with the FLSA before further investigations take place.
Specifically, the employer was not paying employees properly for their time and attendance beyond 40 hours. The FLSA guarantees employees receive at least time-and-a-half their standard wages if they work past that cap during a standard pay period. In addition, the childcare provider recruited employees to perform extracurricular work, teaching children to play soccer and tennis at the facility. However, they were classified as independent contractors rather than employees for that time worked, and did not receive the proper wages for their extra employee attendance.
Throughout the investigation, the division discovered violations in 21 facilities across Colorado, Texas, Kansas, Georgia, New Jersey, Virginia, Illinois and Ohio. To rectify these payroll issues, Creme de la Creme has paid 354 employees $41,440 in back wages.
This focus on childcare providers is part of an overarching effort to ensure employees in the industry receive the wages they are rightfully owed. Childcare employers can take this incident as an opportunity to clean up any payroll practices that might not be in compliance with the FLSA before further investigations take place.
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