Please note: As of January 20, 2021, information in some news releases may be out of date or not reflect current policies.
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 |
|
Jasper |
IN |
53 |
$8,035 |
|
|
Chesterton |
IN |
38 |
$3,399 |
|
|
Knightsville |
IN |
26 |
$10,586 |
|
|
Crown Point |
IN |
24 |
$2,416 |
|
|
Countryside Health Care Center |
Sioux City |
IA |
10 |
$812 |
|
Edwardsville |
IL |
8 |
$570 |
|
|
Kendallville |
IN |
18 |
$1,228 |
|
|
Keosauqua Health Care Center |
Keosauqua |
IA |
35 |
$4,496 |
|
Keota Health Care Center |
Keota |
IA |
11 |
$1,020 |
|
Indianapolis |
IN |
49 |
$4,309 |
|
|
Newton |
IL |
5 |
$226 |
|
|
Newton Health Care Center |
Newton |
IA |
25 |
$1,591 |
|
Danville |
IL |
23 |
$1,416 |
|
|
Oaktown |
IN |
11 |
$445 |
|
|
Paris |
IL |
42 |
$5,306 |
|
|
Bluffton |
IN |
28 |
$2,342 |
|
|
Sigourney Health Care Center |
Sigourney |
IA |
18 |
$2,209 |
|
Versailles |
IN |
7 |
$967 |
|
|
University Nursing and Rehab |
Edwardsville |
IL |
24 |
$1,703 |
|
Urbandale Health Care Center |
Urbandale |
IA |
61 |
$19,422 |
|
Warsaw |
IN |
47 |
$6,848 |
|
|
Elkhart |
IN |
15 |
$1,813 |
|
|
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/.