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October 24, 2024

Nursing Homes Found Liable for Rampant Wage Theft

Home » News » Nursing Homes Found Liable for Rampant Wage Theft

Sarah M. Block
Thurs., October 24, 2024

Two nursing home and assisted living facility operators were recently found liable for committing wage theft by failing to properly compensate healthcare workers including certified nursing assistants, licensed practical nurses, and non-nursing staff in accordance with the Fair Labor Standards Act (FLSA). As a result, these employers must pay substantial sums to the wronged employees to rectify their rampant wage violations. In Su v. Comprehensive Healthcare Management Services, LLC, a federal court in Pittsburgh ruled in favor of the Department of Labor (DOL), who filed suit after investigating the company, and found the nursing home liable for $35.8 million—one of the largest FLSA judgments in history—arising from overtime violations on behalf of over 6,000 nursing home employees working in western Pennsylvania. Similarly, the DOL recovered $375,649 in unpaid overtime wages and liquidated damages on behalf of 806 employees of upstate New York nursing homes owned by Hurlbut Health Consulting LLC because of an ongoing investigation into the company’s overtime practices. This was not the first time the company had been investigated and found liable for FLSA violations.

These are just two very recent examples of nursing homes violating the FLSA and not paying their employees the wages lawfully owed. Unfortunately, wage theft in the nursing home and assisted living facility industry is widespread. Common violations include, but are not limited to:

  • Failing to pay overtime at a time and one-half rate for hours worked over 40 in a workweek;
  • Not combining hours worked at more than one work location in a single week to avoid paying overtime if those hours would add up to more than 40;
  • Failing to include shift differentials or certain premium payments in the regular rate of pay on which the overtime rate is based, resulting in a lower overtime rate than required by law;
  • Failing to pay for work performed during an unpaid meal break;
  • Failing to pay for work performed before the start of a scheduled shift, including completing a shift briefing with an outgoing employee and mandatory meetings; and
  • Improperly classifying employees as exempt from the protections of the FLSA and not paying overtime, for example, because an employee is salaried.

If you work in a nursing home or assisted living or care facility and believe you have suffered from any of the above-listed wage and overtime problems, or if you believe you have not been paid in accordance with the law, contact MSE today at info@mselaborlaw.com or through our website to speak with an experienced labor and employment attorney to learn more about your rights.

Legal Representation for All Workers

When McGillivary Steele Elkin LLP decides to take your case, it is because we believe there is an unacceptable workplace violation that has negatively impacted you or resulted in your employer paying less than what the law requires and which we have a reasonable chance of remedying. We recognize that meritorious claims should not go unremedied because of the level of a person’s resources.

To ensure accessible and available legal representation for all our clients, MSE handles cases through different forms of fee arrangements, including contingency fees, hourly fees and fixed fees.

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