The U.S. Department of Labor has successfully recovered $446,334 in back wages and liquidated damages from two home care companies in northwest Louisiana. These companies had misclassified 88 workers as independent contractors, thereby denying them overtime wages, which is a violation of federal law.
An investigation by the department's Wage and Hour Division revealed that Inner Quality Services LLC, based in Stonewall, misclassified 24 employees. Similarly, Sincere Client Care Services LLC, located in Shreveport, misclassified 64 employees. Both companies paid their workers straight-time rates for all hours worked, including those exceeding 40 hours per week.
To resolve these violations of the Fair Labor Standards Act, the division secured $70,106 in back wages and an equal amount in liquidated damages from Inner Quality Services. For Sincere Client Care Services' affected employees, $153,061 was recovered in back wages along with an equivalent sum in liquidated damages.
"The Wage and Hour Division takes employee misclassification seriously," stated Troy Mouton, Wage and Hour Division District Director in New Orleans. "We will continue to hold employers accountable when workers are denied their lawfully earned wages." He further emphasized that misclassification often leads to workers losing essential workplace protections and benefits like overtime pay.
The Wage and Hour Division offers resources for those who believe they may be owed back wages. The division can communicate confidentially with both workers and employers in over 200 languages via its helpline at 1-866-4-US-WAGE (487-9243). Additionally, the agency provides a Timesheet App available for Android and Apple devices to help ensure accurate tracking of hours and pay.
For more information on employee misclassification or other related issues, individuals are encouraged to learn more about the division's efforts.