Feds order Michigan home healthcare provider to pay back $93K in overtime wages to 23 workers

A companion worker includes babysitters, cooks, waiters, maids, housekeepers, nannies, nurses, janitors, caretakers, handymen, gardeners, home health aides and more, according to the U.S. Department of Labor.

The company’s owners Mary Clark and Kathryn Flick failed to pay companion services workers their overtime wages from Jan. 23, 2018, through June 1, 2019, according to investigators for the Wage and Hour Division of the U.S. Department of Labor in a press release.

Investigators also found that Independent Home Care of Michigan LLC failed to keep accurate records of hours worked and rates of pay for work performed, which are violations of the Fair Labor Standards Act.

“The U.S. Department of Labor is determined to ensure employers comply with the law and will take all necessary actions to hold them responsible,” Regional Solicitor of Labor Christine Heri in Chicago said in the release. “The department is often the only advocate for workers denied their rightful wages and we are committed to being their voice.”

Judge Victoria A. Roberts of the U.S. District Court for the Eastern District, Southern Division of Michigan issued her findings against Clark and Flick on May 17, 2022, following a two-day bench trial on May 9 and 10. The $93,331 payment represents $46,665 in back wages and an equal amount in liquidated damages, according to the release.

Independent Home Care of Michigan LLC challenged the findings. It argued against liquidated damages claiming ignorance of the change in the law and reliance on advice given by the department on the old law in 1999 and on a community agency that contracted the services of the company, according to the release.

The Home Health Care Final Rule of 2013 requiring staffing agencies to pay overtime to companion services workers when they work more than 40 hours in a workweek went into effect on Jan. 1, 2015.

To avoid paying liquidated damages, the court stated that the employers had to make “ongoing and continuing efforts” to keep informed of “ever-changing laws.” The company failed to meet its substantial burden of establishing it took active and affirmative steps to comply with the law, according to the release. 

“The Home Health Care Final Rule made significant changes that recognize the critical tasks and long hours performed by home healthcare providers and required employers to begin compensating workers for overtime in January 2015,” Wage and Hour Regional Administrator Michael Lazzeri in Chicago said in the release. “Complying with changes in this highly publicized law is the responsibility of employers in the healthcare industry.”

Violations of worker protections are prevalent in the home health care industry, according to Scott Allen, the regional director for public affairs and media relations for the U.S. Department of Labor.

From 2019 to 2021, Wage and Hour Division investigations recovered more than $747,926 for Michigan healthcare workers as a result of violations of worker protections under the Fair Labor Standards Act, according to the department. 

In March 2022, the Bureau of Labor Statistics reported that the 682,000 healthcare and social services workers left their positions and the field had more than 2 million openings.

Additionally, as the aging U.S. population grows and demand for home healthcare services increases, employment in a variety of healthcare sectors is projected to grow 16% from 2020 to 2030 – faster than the average for all occupations – adding about 2.6 million new jobs. 

If you think you may be owed back wages collected by the Wage and Hour Division., contact its toll-free line at 866-4US-WAGE (487-9243).