This month the United States Department of Labor reported that from 2011 to 2014 it recovered more than $6.8 million in overtime and unpaid minimum wages for more than 1,300 employees in Bay Area nursing homes and residential care facilities.
Working conditions in some residential care facilities can be difficult for many caregivers. Many facilities require employees to stay overnight on the premises to ensure round-the-clock care for residents. Investigators found that some workers were not paid for overnight time and that some were denied adequate sleeping facilities and were forced to sleep on the floor. Such conditions can erode the quality of care residents receive.
Investigators also found that employees paid hourly often worked 10 to 14 hours per day, six days per week, but were only paid for eight hours per day. Some workers were paid a flat weekly salary regardless of hours worked and were therefore denied overtime pay for hours beyond 40 in a workweek. Employees were sometimes threatened or harassed when they questioned their working conditions and were instructed not to cooperate with investigators.
Investigations completed in the past year reflect the following violations
- The owners of Retirement Plus of San Carlos and four other Bay‑Area facilities paid caregivers as little as $5 per hour and misclassified one employee as an independent contractor; the employer paid more than $630,000 in minimum wage, overtime and damages to resolve the case.
- Lake Alhambra Assisted Living Center violated a protective order prohibiting retaliation against caregivers who cooperated with the investigation and ultimately paid $304,000 in back wages and damages to 32 caregivers, plus civil money penalties; an independent monitor was appointed to ensure future compliance.
- Anne's Guest Home, which operates multiple facilities in Pleasanton and Livermore, was found in violation of minimum wage, overtime, and record-keeping provisions and paid more than $447,000 in back wages and damages in a consent judgment.
- Farol's Residential Care Home paid caregivers salaries below the minimum wage in many cases and did not pay overtime; the business was ordered to pay a total of $405,284 in back wages, damages, interest and penalties.
- Vicky Rebecca Quedado, doing business as We Care ICF/DD-H and Becker Home Inc., operates three intermediate residential-care facilities and will pay $261,356 in back wages and liquidated damages to low-wage workers for FLSA violations related to flat salaries and unpaid overtime.
The Fair Labor Standards Act (FLSA) requires that covered, nonexempt workers be paid at least the federal minimum wage and one and one-half times their regular rate for hours worked beyond 40 in a workweek, and it requires employers to maintain accurate time and payroll records.
These cases show how labor violations in care facilities can affect both workers and the people they care for. For information about insurance considerations for nursing facilities, see Nursing Home Facilities Violation of Residents' Rights Insurance.
If you manage or oversee an adult care facility, you may also want to review coverage options relevant to adult care settings: Adult Care Facilities Violation of Residents' Rights Insurance.
Don Phin, Esq., is VP of Strategic Business Solutions at ThinkHR and has extensive experience in HR and employment practices. For employers, maintaining accurate records, paying required wages and overtime, and treating employees respectfully are essential to reduce legal and operational risk. To review coverage options, talk to an agent.
Frequently Asked Questions
Are caregivers entitled to overtime pay?
Yes. Caregivers who are nonexempt under the FLSA are entitled to overtime at one and one-half times their regular rate for hours worked over 40 in a workweek.
What records must an employer keep?
Employers must keep accurate time and payroll records showing hours worked, wages paid, and other payroll information required by law.
Can employers require staff to sleep on-site without pay?
On-call or sleep-time rules are fact-specific; employers must follow wage-and-hour regulations that determine when sleep or on-call time is compensable.
What protections exist against retaliation for reporting violations?
Workers are protected from retaliation for cooperating with investigations or asserting wage-and-hour rights, and employers may face penalties for retaliatory actions.