Home healthcare organisation Care Providers of Wilmington has been ordered to pay $90,640 (£70,091.91) in back wages and liquidated damages to 21 employees for violating minimum wage, overtime and record keeping regulations.
An investigation by the Wage and Hour Division (WHD), part of the US Department of Labor, found that the North Carolina-based organisation had failed to comply with the Fair Labor Standards Act (FLSA) because the business had not paid employees for time spent travelling between patients’ homes when they visited more than one client in a day; staff were instead only paid for the time spent inside patients’ homes.
Care Providers of Wilmington also incorrectly classified its employees as independent contractors for time worked above 40 hours a week. The organisation reimbursed employees via payroll for completing 40 hours of work a week, but any overtime beyond this was paid to staff at a straight rate, as independent contractors rather than employees.
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The organisation also did not adhere to the record keeping requirements of the FLSA, failing to maintain accurate payroll records that reflected the actual number of hours that employees worked, as well as the wages owed to each staff member.
“Employers must fully understand their responsibilities under the FLSA. Employers and employees alike are encouraged to call our offices to speak directly with trained [WHD] professionals and ask any questions they may have. Violations like those in this case can be avoided.”
Care Providers of Wilmington was unavailable for comment at the time of publication.