United States Department of Labor Announces Enforcement Initiative Targeting North Carolina Residential Care Employers

The Wage and Hour Division of the U.S. Department of Labor recently announced a new enforcement initiative which will concentrate on the payroll practices of North Carolina residential care industry employers. The initiative will target group homes, elder care facilities and other businesses which provide residential care for the elderly. The DOL is basing the initiative on perceived widespread non compliance by North Carolina companies with regard to the minimum wage, overtime and record keeping requirements of the Fair Labor Standards Act (FLSA).

According to the DOL, within this as well as other industries, wage and hour violations commonly include issues concerning what is and what is not working time. Most residential care facilities often have 24 hour shifts. Employees can only be taken off the clock during their shift if certain very specific requirements of the law are met. Employees that are due overtime pay are sometimes shortchanged and not paid according to the provisions of the FLSA.

This enforcement initiative means that the DOL investigators will conduct audits of wage and hour practices of residential care as well as other health care related employers whether or not a complaint has been filed.

As a result of this initiative, all employers should review their pay and record keeping practices and be prepared to respond in the event of a DOL compliance audit.

Below is a listing of the top 10 reasons that employees file lawsuits under the FLSA

1. Employees are working "off the clock" without being paid

2. Employees are working "on the clock" but are not being paid for all of their work time

3. Workers are wrongly classified as "exempt" from the overtime pay requirements

4. Workers are wrongly classified as "independent contractors"

5. Shift differentials and bonuses are not being included in overtime calculations

6. Employees learn that they cannot "volunteer" their time without pay

7. Employees are not compensated for "training "time

8. Employees work through lunch without pay

9. Unlawful use of "Comp time"

10. Employees who work two different jobs within the same organization are not paid overtime for all hours worked after 40.

A recent study by the DOL concluded that almost 70% of all businesses in the United States are in violation of the existing statute. In this dangerous environment, all employers must be able to fully understand and implement these complicated and confusing regulations. An organization's best defense against the potential expense of litigation is to proactively review its Human Resources policies, procedures, compensation practices and other functions.

For assistance with any Human Resources related questions or other issues, please Contact Us.

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Paul Hilton is a certified Human Resources Consultant, located in Columbia, SC.
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