The U.S. Department of Labor (DOL) has won a default judgment against a Pennsylvania home healthcare company and its owner for failing to pay overtime wages to 23 workers in violation of the Fair Labor Standards Act (FLSA).
The U.S. District Court for the Western District of Pennsylvania ordered Aliquippa, Pa.-based Lucky’s Home Care LLC and owner Cheryl McMiller on Jan. 9 to pay $142,634 in overtime back wages and an equal amount in liquidated damages, the DOL reported Feb. 17.The default judgment was awarded after the company failed to respond to an August 2022 complaint "in a timely manner," the DOL reports.
An investigation by the DOL's Wage and Hour Division determined that Lucky’s Home Care and McMiller paid regular hourly wages for overtime hours worked. Although the company "occasionally paid some workers the overtime premium, they capped the number of hours for which the employees could earn overtime wages, and then reverted back to paying straight-time hourly rates for hours worked over the cap," according to the report.
“In this case, Lucky’s Home Care LLC and its owner Cheryl McMiller failed to honor their legal obligation to pay workers all of their hard-earned wages, including overtime pay," Wage and Hour District Director John DuMont said in the report. "The court’s action is an important step toward making these workers financially whole.”
In addition to ordering Lucky's Home Care and McMiller to pay $285,268, the judgment "permanently forbids" the company and owner from violating the FLSA "in the future." The court rejected the employer’s motion to dismiss the complaint.
Samantha Thomas, the DOL's Deputy Regional Solicitor in Philadelphia, said in the report that the DOL "will not hesitate" to prosecute employers in federal district court to recover unpaid wages and damages for workers under the FLSA.
“This case shows healthcare industry employers that noncompliance with federal law can lead to legal consequences,” Thomas said in the report.
The DOL recovered $14.9 million in back wages for more than 22,000 healthcare workers in fiscal year 2022, according to the report. The demand for home healthcare services will increase as the population ages, the DOL states, leading to a projected 13% employment increase, or about 2 million new jobs, 2021 to 2031, faster than the average for other occupations.
DuMont said employers who comply with labor law and respect their workers’ rights will have a clear advantage when it comes to recruiting and retaining workers.
“Professional caregivers have always been and will continue to be among our nation’s most essential workers," DuMont said in the report. "We depend on them to care for us and our family members in times of need and, in return, they deserve our appreciation, respect and protection."
