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The U.S. Department of Labor reports that it recovered over $1 million in wages for home health workers from two Texas companies. Alegre Home Health Care LLC in Mission and Pas Home Care LLC in Weslaco both improperly paid their workers, failing to pay minimum wage or required overtime. The DOL alleges that these two companies shortchanged 859 employees. “Employers who fail to pay minimum wage and required overtime rates make it more difficult for workers to care for their needs and those of their families,” said Wage and Hour Division Regional Administrator Betty Campbell in Dallas.
Employers purposefully miscalculated hours worked
The Wage and Hour Division investigation found that both employers improperly calculated all hours worked, which meant that employees were paid straight-time rates for all hours worked, even when hours went over 40 in a workweek. The employers also adjusted established fair wage rates when employees worked overtime, to avoid paying the required OT rates. According to the DOL, “improper pay practices are a systemic problem in Texas and across the nation.” In 2022, the DOL recovered over $28 million in back wages for home health workers.
Vulnerable workers fearful of reporting wage theft
Nursing home caregivers and home healthcare workers often have thankless and tiring jobs. It’s physically and mentally demanding work, but these dedicated workers are often underpaid. The Economic Policy Institute found that 80.9% of residential long-term care workers were women. There’s a disproportionate number of Black women in the industry (22.4%), compared to 6.5% in the overall workforce. Immigrant women also make up 12.8% of the industry, compared to 7.2% in the workforce. These workers deserve to be paid their legal wages and benefits, but at the same time, these workers are often more vulnerable and unwilling to rock the boat.
Make sure to calculate wages and OT correctly
The Wage and Hour Division of the DOL is working hard to protect essential workers, especially those who may be scared to report their employer. Employers and employees can confidentially contact the DOL/WHD at 1-866-4-US-WAGE (487-9243). The division can take reports in over 200 languages. There are plenty of resources available for employers on how to comply with federal laws pertaining to fair wages. Know the rules pertaining to overtime and wages in your industry and for your location to avoid having the DOL recover lost wages from your business.
