INDIANAPOLIS, IN – The U.S. Department of Labor's Wage and Hour Division and a large Midwest health care management company have reached an agreement to resolve overtime violations at 23 skilled nursing and assisted living facilities in Iowa, Illinois, and Indiana.
Ide Management Group LLC, which operates the facilities as IMG, has agreed to pay 594 workers $165,379 in back wages and damages.
The Wage and Hour Division found the Indianapolis-based company failed to include non-discretionary bonuses and shift-differentials paid to employees in overtime rate calculations, a violation of the Fair Labor Standards Act (FLSA) that resulted in workers being paid less than they were legally owed. The omission also led to violations of the FLSA's record-keeping provisions. In addition to paying the back wages and damages, Ide Management Group has employed a new payroll service and is using new software to ensure correct computation of pay rates in the future.
"Failing to include shift differentials and bonuses – such as those paid for attendance and retention – when computing an employee's regular rate of pay is a common overtime violation," said Regional Wage and Hour Division Administrator Karen Chaikin. "We encourage all employers to take advantage of the Division's education and outreach efforts to help them understand their responsibilities and how to properly calculate overtime rates." The Division determined employees are owed back wages and equal amounts in damages as follows: Facility Name City State Employees Total Wages Cathedral Health Care Jasper IN 53 $8,035 Chesterton Manor Chesterton IN 38 $3,399 Cloverleaf Health Care Knightsville IN 26 $10,586 Colonial Nursing & Rehab Crown Point IN 24 $2,416 Countryside Health Care Center Sioux City IA 10 $812 Edwardsville Nursing and Rehabilitation Edwardsville IL 8 $570 Kendallville Manor Kendallville IN 18 $1,228 Keosauqua Health Care Center Keosauqua IA 35 $4,496 Keota Health Care Center Keota IA 11 $1,020 Madison Health Care Center Indianapolis IN 49 $4,309 Newton Care Center Newton IL 5 $226 Newton Health Care Center Newton IA 25 $1,591 North Logan Health Care Center Danville IL 23 $1,416 Oak Village Oaktown IN 11 $445 Paris Health Care Center Paris IL 42 $5,306 River Terrace Retirement Community Bluffton IN 28 $2,342 Sigourney Health Care Center Sigourney IA 18 $2,209 Silver Memories Health Care Versailles IN 7 $967 University Nursing and Rehab Edwardsville IL 24 $1,703 Urbandale Health Care Center Urbandale IA 61 $19,422 Warsaw Meadows Warsaw IN 47 $6,848 Woodland Manor Elkhart IN 15 $1,813 Yorktown Manor Yorktown IN 16 $1,518 Compliance information specific to the home care industry is available on the division's website at https://www.dol.gov/whd/homecare/.
Persons with questions can get more information about this topic and all of the federal wage laws administered by the Division by calling the agency's toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information is available online at http://www.dol.gov/whd/.
Source: Wage and Hour Division
