News Release

US Department of Labor recovers $1.5M in back wages for 242 home healthcare workers in Pennsylvania, Missouri

Investigation reveals employer manipulated pay rates to avoid paying overtime

HARRISBURG, PA – When an employer shortchanges home healthcare workers they hurt the workers, their families and the people for whom they care. In the case of a Harrisburg home healthcare company, a U.S. Department of Labor investigation has remedied overtime violations involving 242 workers and recovered $1,566,457 in hard-earned wages owed to them.

The department’s Wage and Hour Division found Neoly Home Care LLC manipulated pay rates to create the appearance that they paid overtime when employees worked more than 40 hours in a workweek. In fact, Neoly paid straight-time wages for all the hours employees worked, regardless of the number of hours worked per week. Neoly paid a lower hourly rate when employees worked more hours. While appearing to pay time-and-a-half for overtime hours, Neoly actually paid employees approximately the same rate for all hours worked in both overtime and non-overtime workweeks. This scheme violated the Fair Labor Standards Act, which requires payment for overtime hours at time-and-one-half workers’ regular rates. In addition to the back wages recovered, the division assessed $46,376 in civil money penalties for the willful nature of the violations.

The recovery affects workers in Harrisburg, Pittsburgh and Scranton, and in St. Louis.

“Many workers in this industry depend on their wages just to make ends meet, so actions like those taken by Neoly Home Care are especially harmful,” said Wage and Hour Division Acting Administrator Jessica Looman. “Employers that violate the law also gain an unfair competitive advantage over law-abiding employers. We remain committed to ensuring that essential workers take home every cent they have earned, and to holding employers accountable.”

The investigation led to the recovery of back wages at the following locations:

Location

Employees

Back wages

Harrisburg

110

$789,343

Pittsburgh

50

$559,500

Scranton

65

$203,388

St. Louis

17

$14,225

Based in Harrisburg, Neoly provides non-medical health aide and companion care services to seniors, elderly and mentally and physically challenged adults.

For more information about the FLSA and other laws enforced by the agency, contact the division’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. 

Agency
Wage and Hour Division
Date
July 1, 2021
Release Number
21-1105-PHI
Contact: Joanna Hawkins
Contact: Leni Fortson
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