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Wage and Hour Division (WHD)

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Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: 14-384-CHI

Date: 

May 12, 2014

Contact: 

Scott Allen Rhonda Burke

Phone: 

312-353-6976

Lincoln Rehabilitation Center pays nearly $67,000 in unpaid wages to 138 workers following US Department of Labor investigation


DECATUR, Ill. -- Lincoln Rehabilitation Center has paid 138 employees $66,983 in unpaid wages because of an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found that the company violated the Fair Labor Standards Act by failing to compensate employees for all hours worked, including pre- and post-shift work, and improperly exempted some employees from overtime requirements. Lincoln Rehabilitation Center is a 140-bed nursing home in Decatur, Ill., managed by Skokie-based YAM Management LLC, which also manages 19 other Illinois nursing home facilities.

“Professionals in the health care industry provide vital services and must be paid as required by law. Receipt of these back wages and current payment in compliance with labor law has a great impact on these workers and their families,” said Norma Cervi, the division’s district director in St. Louis. “Employers that violate labor laws harm not only workers, but competitors who abide by the law. The Wage and Hour Division is committed to ensuring that employees’ rights are protected, and employers are working on a level playing field.”

Investigators from the division’s St. Louis District Office found that Lincoln Rehabilitation Center failed to calculate time worked by employees properly, resulting in overtime violations. Additionally, salaried positions, such as activity directors and social service directors, were improperly classified as exempt from overtime.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers are required to maintain accurate time and payroll records.

The Wage and Hour Division enforces labor laws to protect employees, employers and American taxpayers, to provide a level playing field for employers and to ensure fair wages and safe working environments for employees. Such protections help to support ladders of opportunity, igniting economic engines to grow a strong middle class. When employees are denied their hard-earned income, the Wage and Hour Division is committed to ensuring that the money ends up in the hands of those who worked for it—money that will be spent on rent, transportation, and putting food on the table. Since the beginning of 2009, the agency has concluded 145,884 investigations nationwide, resulting in more than $1 billion in back wages for 1,238,589 workers.

For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or visit http://www.dol.gov/whd.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.