A Department of Labor investigation found an Illinois-based residential nursing care facilities management company liable for $3 million in back wages for 3,024 caregivers.
Peterson Health Care Inc., of Peoria, reportedly did not pay correct overtime, failed to pay wages for meal periods less than 20 minutes, did not add bonuses or other incentive pay and did not maintain accurate records of work hours, according to a May 24 news release. The company has facilities in Illinois, Indiana, Iowa and Missouri.
“While residential health care workers at Petersen Health Care Inc. provided around-the-clock, daily living assistance and delivered essential care to people in need, they were subject to pay practices that underreported their hours of work and denied them the pay they were legally due,” Jessica Looman, the DOL’s wage and hour acting administrator, said in the release. “The U.S. Department of Labor will ensure that workers who commit themselves to caring for others will receive the wages they earned so they can also take care of themselves and their families.”
Mark Petersen, the primary owner and CEO of Petersen Health Care, reached an agreement with the DOL, saying the company will pay the overtime back wages, according to the release. He also is signing an agreement stipulating the company will comply with the Fair Labor Standards Act in the future.
The case was especially concerning in today’s environment, where the industry is struggling to find and keep workers, the release reported.
“Failing to respect workers’ rights and pay workers their full wages means that these essential workers will look elsewhere for employment,” Looman said, according to the release.
