Two central Pennsylvania rehabilitation centers agreed to more than $500,000 in damages to resolve Fair Labor Standards Act violation after overtime and record keeping violations.
In the consent judgment filed in U.S. District Court for Pennsylvania's Middle District, the two facilities agreed to pay $256,684 in back wages and the same amount in liquidated damages to 231 nursing staff, according to a Nov. 17 U.S. Department of Labor news release.
“Our investigation found a common and costly error employers make, the failure to include non-discretionary bonuses in an employee's regular rate of pay when calculating overtime rates," DOL Wage and Hour District Director Alfonso Gristina said in the news release. "The Wage and Hour Division encourages employers to use the online tools and assistance we offer to avoid compliance issues, and reminds workers that they can contact us with questions about their wages and rates of pay."
The investigation by DOL's Wage and Hour Division found that the parent companies of Spring Creek Rehab and Nursing Center in Harrisburg and Laurel Lakes Rehab and Wellness Center in Chambersburg "engaged in pay practices that violated the Fair Labor Standards Act," the news release said.
Both employers were found to have paid non-discretionary bonuses to nursing staff, but then failed to include those incentives in their pay rates when calculating overtime rates. Bonuses were paid for working particular shifts, agreeing to additional shifts and providing needed pandemic support, the release reported.
DOL's investigation also found the facility didn't maintain proper records of hours worked, according to the release.
"Today's healthcare worker has the ability to choose an employer who values them, pays them full wages and respects their workplace rights," Gristina said. "Employers who comply with labor laws and recognize the dignity of work will be more attractive to workers entering the workforce, making career moves or looking for new opportunities."
