Wage and Hour issues are serious business, which is why we ran a blog series last year on related topics. A Connecticut home health agency was ordered to pay back wages for OT violations and for improperly deducting fees for food and lodging from employees’ wages. The order to repay back wages and liquidated damages affected 51 employees and was due in October 2021.
The agency failed to make the payment and was fined $100 per business day until it complied, and the US Marshals Service facilitated the seizure of monies owed from the agency’s bank account.
There are, of course, a few bad apples who spoil business for the rest of us. They blatantly and flagrantly violate laws and drag their feet on righting a situation. But there are others who don’t realize their actions are incorrect. While we can’t possibly know in which category this agency falls, we do know that it behooves every long-term care client to clearly understand wage & hour laws and to sporadically check that they are being upheld in the business. The margin for profitability for most agencies is quite small. Restitution of back wages, fines, penalties and lost goodwill can threaten the long-term viability of any business.
Our suggestion: start the new year by conducting a small audit of 2021’s payroll. Make sure you’ve paid OT where it is due and that you understand how and when you may deduct expenses from employee wages. If you find any issues, expand your audit until you can determine the extent of the violations. And then, get legal assistance to rectify the situation and avoid penalties.