News Release

U.S. Department of Labor and Health Care Management Company Reach Agreement to Resolve Overtime Violations at 23 Facilities in Three States

INDIANAPOLIS, IN – The U.S. Department of Labor’s Wage and Hour Division and a large Midwest health care management company have reached an agreement to resolve overtime violations at 23 skilled nursing and assisted living facilities in Iowa, Illinois, and Indiana.

Ide Management Group LLC, which operates the facilities as IMG, has agreed to pay 594 workers $165,379 in back wages and damages.

The Wage and Hour Division found the Indianapolis-based company failed to include non-discretionary bonuses and shift-differentials paid to employees in overtime rate calculations, a violation of the Fair Labor Standards Act (FLSA) that resulted in workers being paid less than they were legally owed. The omission also led to violations of the FLSA’s record-keeping provisions. In addition to paying the back wages and damages, Ide Management Group has employed a new payroll service and is using new software to ensure correct computation of pay rates in the future.

“Failing to include shift differentials and bonuses – such as those paid for attendance and retention – when computing an employee’s regular rate of pay is a common overtime violation,” said Regional Wage and Hour Division Administrator Karen Chaikin. “We encourage all employers to take advantage of the Division’s education and outreach efforts to help them understand their responsibilities and how to properly calculate overtime rates.”

The Division determined employees are owed back wages and equal amounts in damages as follows:

Facility Name

City

State

Employees

Total Wages

Cathedral Health Care

Jasper

IN

53

$8,035

Chesterton Manor

Chesterton

IN

38

$3,399

Cloverleaf Health Care

Knightsville

IN

26

$10,586

Colonial Nursing & Rehab

Crown Point

IN

24

$2,416

Countryside Health Care Center

Sioux City

IA

10

$812

Edwardsville Nursing and Rehabilitation

Edwardsville

IL

8

$570

Kendallville Manor

Kendallville

IN

18

$1,228

Keosauqua Health Care Center

Keosauqua

IA

35

$4,496

Keota Health Care Center

Keota

IA

11

$1,020

Madison Health Care Center

Indianapolis

IN

49

$4,309

Newton Care Center

Newton

IL

5

$226

Newton Health Care Center

Newton

IA

25

$1,591

North Logan Health Care Center

Danville

IL

23

$1,416

Oak Village

Oaktown

IN

11

$445

Paris Health Care Center

Paris

IL

42

$5,306

River Terrace Retirement Community

Bluffton

IN

28

$2,342

Sigourney Health Care Center

Sigourney

IA

18

$2,209

Silver Memories Health Care

Versailles

IN

7

$967

University Nursing and Rehab

Edwardsville

IL

24

$1,703

Urbandale Health Care Center

Urbandale

IA

61

$19,422

Warsaw Meadows

Warsaw

IN

47

$6,848

Woodland Manor

Elkhart

IN

15

$1,813

Yorktown Manor

Yorktown

IN

16

$1,518

Compliance information specific to the home care industry is available on the division’s website at https://www.dol.gov/whd/homecare/.

Persons with questions can get more information about this topic and all of the federal wage laws administered by the Division by calling the agency’s toll-free helpline at 866-4US-WAGE (487-9243). All calls are confidential. More information is available online at http://www.dol.gov/whd/.

WHD News Release: 
09/15/2017
Contact Name: 

Scott Allen

Phone Number: 
Contact Name: 

Rhonda Burke

Phone Number: 
Release Number: 
17-1155-CHI