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Labor Department recovers $137K from Fremont retirement home over wage violations

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Katelyn Walker Mooney Acting Assistant Secretary for Policy | Official Website

An investigation by the U.S. Department of Labor's Wage and Hour Division has resulted in the recovery of $137,344 in back wages and damages from Lincoln Retirement Villa LLC, an assisted living facility located in Fremont, California. The investigation found that the facility failed to properly account for and pay overtime hours worked by 20 employees, violating the Fair Labor Standards Act. Additionally, the employer did not maintain accurate payroll records as required by law.

The department recovered $68,672 in back wages and an equal amount in liquidated damages for the affected workers. Due to the willful nature of these violations, a civil money penalty of $8,330 was also imposed on Lincoln Retirement Villa.

"Lincoln Retirement Villa not only knowingly underpaid its employees, but the employer made it a systemic business practice," stated Francisco Ocampo, Wage and Hour Division District Director in San Jose, California. "The Department of Labor will remain vigilant against labor abuses and exploitation by players in this highly problematic industry that employ some of the most vulnerable workers to perform the important work of caring for seniors."

This case highlights ongoing compliance issues within the healthcare sector. In fiscal year 2024 alone, over 2,300 investigations were conducted by the Wage and Hour Division nationwide, recovering more than $37.8 million in back wages for nearly 30,000 workers.

Workers can check if they are owed back wages through the division’s Workers Owed Wages search tool. Both employers and employees can reach out to the Wage and Hour Division at 1-866-4-US-WAGE for assistance. To ensure accurate tracking of hours worked and pay received, individuals are encouraged to download the department’s free Timesheet App available on Android and iOS platforms.

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