Tennessee Pediatric Clinic Enterprise to Pay $92,510 in Wages After U.S. Department of Labor Investigation Finds Violations
NASHVILLE, TN – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Capstone Pediatrics PLLC – a Nashville, Tennessee-based pediatric clinic enterprise – will pay $92,510 in back wages to 31 employees for violating the overtime, minimum wage, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).
WHD investigators determined Capstone Pediatrics PLLC – owned by Dr. Gary Griffieth and Winnie Toliver – failed to provide payment to employees on their scheduled paydays on multiple occasions. The employer also issued paychecks on some occasions without sufficient funds in their payroll accounts to cover the amounts of those checks, resulting in the checks being returned and associated fees being charged to the employees by their banks. These practices resulted in minimum wage violations when Capstone did not pay employees for the hours they had worked, and in overtime violations when those unpaid workweeks exceeded 40 hours.
The employer also incorrectly classified one employee as an independent contractor and paid that employee straight-time rates without regard to the number of hours actually worked. This practice resulted in additional overtime violations when that employee exceeded 40 hours in a workweek yet was not paid overtime. The employer also failed to document the total number of hours worked by the incorrectly classified employee.
"Employers have a non-negotiable duty to pay their employees the wages they are due in a timely manner," said Wage and Hour District Director Nettie Lewis, in Nashville. "The U.S. Department of Labor will continue to work to ensure that employers uphold their legal responsibilities to pay their employees. We encourage all employers to make use of the resources we provide to help them understand their responsibilities and operate in compliance with the law."
Capstone Pediatrics PLLC owned and operated 10 clinics throughout middle Tennessee in Brentwood, Clarksville, Lebanon, Murfreesboro, Nashville, and Smyrna. During the investigation, seven locations were closed.
For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.