Wage and Hour Division (WHD)
Archived News Release — Caution: Information may be out of date.
Date: Jan. 10, 2013
Contact: Leni Fortson or Joanna Hawkins
Phone: 215-861-5102 or 215-861-5101
U.S. Department of Labor
Wage and Hour Division
Release Number: 13-29-NEW (wh 13-002)
US Labor Department files petition for civil contempt against health care management companies for repeat federal wage violations
Company failed to pay back wages, continues to violate law
HACKENSACK, N.J. -- The U.S. Department of Labor has filed a petition for civil contempt against Broadway Healthcare Management LLC, Broadway Nutritional Services LLC and Michael Konig for failing to comply with a November 2009 consent judgment which prohibited violations of the Fair Labor Standards Act.
Investigations conducted by the department’s Wage and Hour Division determined that Broadway Healthcare Management violated the FLSA and the 2009 judgment when it partnered with Prime Services of Brooklyn, N.Y., who did not actually employ any of the employees affected, in an effort to avoid paying overtime wages to workers. Nurses and support staff employed at several of Broadway’s 10 locations throughout New Jersey were issued two separate paychecks for overtime workweeks, one from Broadway and one from Prime Services, neither of which included pay for hours worked beyond 40 per week or an overtime premium. The company also failed to pay nursing staff for certain hours worked beyond the scheduled end of their shifts. Additionally, the employer failed to include shift differentials and bonuses in employees’ regular rates for the purpose of computing overtime pay.
“Broadway Healthcare Management has a long history of wage violations at the locations they operate. This case demonstrates that they clearly knew their obligation to pay overtime, yet willfully took steps to circumvent it,” said Brian Johnson, director of enforcement for the division’s Northeast Region. “Filing this petition demonstrates the Wage and Hour Division’s commitment to using all enforcement tools available to investigate repeat violators, recover workers’ wages and ensure accountability under the law.”
The companies and Konig entered into the consent judgment to resolve the findings of a 2008 Wage and Hour Division investigation. The petition seeks to have the judge find the defendants in civil contempt and to order them to produce complete records and pay the cost of an independent auditor to compute back wages due.
Violations were found at Manhattanview Nursing Home, Union City, N.J.; Teaneck Nursing Center, Teaneck, N.J.; Amboy Care Center, Perth Amboy, N.J.; Providence Nursing Center, Trenton, N.J.; Royal Health Gate, Trenton, N.J.; Oceana Rehabilitation & Nursing Center, Cape May, N.J.; Shore Meadows Rehabilitation & Nursing Center, Toms River, N.J.; Southern New Jersey Extended Care, Bridgeton, N.J.; Manahawkin Nursing and Rehabilitation Center, Manahawkin, N.J.; and Sterling Manor, Maple Shade, N.J.
The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. In general, hours worked includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal work activity to the end of the last principal activity of the workday. Additionally, the law requires that accurate records of employees’ wages, hours and other conditions of employment be maintained.
For more information about the FLSA, visit http://www.dol.gov/whd or call the division’s toll-free helpline at 866-4US-WAGE (487-9243). The case is being litigated by the department’s New York Regional Office of the Solicitor.
U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.