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News Brief

Silicon Valley residential care facilities violated overtime, minimum wage laws; 32 workers to receive $718K in back wages, damages

Employers: Lorraine Cerezo Lim doing business as LQC Care Home and Richlee Care Home
Luzviminda Cerezo doing business as White Oaks Manor, Cerezo Residential Care Home and Ross Senior Care Home

Sites: 427 Richlee Drive, Campbell, California
2064 Cherry Ave., San Jose, California
2991 Faircliff Court, San Jose, California
1573 Willow Oaks Drive, San Jose, California
2858 Ross Ave., San Jose, California
1680 White Oaks Ave., Campbell, California
2934 Jessie Court, San Jose, California

Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found the owners of the two residential care enterprises in violation of the minimum wage, overtime and recordkeeping provisions of the Fair Labor Standards Act. Specifically, the employers paid most workers a flat rate per day, ranging from $75 to $103, for working at least 12 hours per day, 5 to 6 days a week. As a result, the employer violated minimum wage laws when the day rates failed to cover at least $7.25 per hour for all the hours employees worked. The employer also failed to pay workers time and one-half their regular rates when they worked more than 40 hours in a week, as overtime laws require, and failed to record the hours actually worked by employees in violation of the FLSA’s provisions. 

Resolution: The employers will pay 32 workers more than $359,000 in back wages and an equal, additional amount in liquidated damages.

Quote: “Workers in the residential care industry, who work long hours taking care of our loved ones, often struggle to take care of their own families. When they are denied hard and rightfully earned wages, it's unacceptable,” said Susana Blanco, director of the Wage and Hour Division’s San Francisco District Office. “The violations found here are all too common. The resolution of this case sends a strong message that we are committed to making sure that these workers take home every penny they have rightfully earned.”

Background: The department’s Wage and Hour Division continues to find violations in the residential care field, particularly in the Bay Area. In the 2015 fiscal year, the division’s San Francisco District Office concluded more than 100 investigations of residential care facilities and nursing homes, resulting in $3 million in back wages and damages for more than 475 employees.

Information: For more information about federal wage laws administered by the Wage and Hour Division, call the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.

Agency
Wage and Hour Division
Date
June 23, 2016
Release Number
16-1273-SAN
Contact: Leo Kay
Phone Number
Contact: Jose Carnevali