Staffing agency to pay $400,000 after shorting LTC workers on overtime pay

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The agency reportedly stopped paying workers overtime rates after they worked more than 47 hours in a week.
The agency reportedly stopped paying workers overtime rates after they worked more than 47 hours in a week.

A Minnesota long-term care staffing agency has agreed to pay more than $400,000 in back wages and damages following allegations that it failed to pay almost 100 workers the correct overtime wages, the Department of Labor announced Friday.

All Temporaries Midwest Inc. reportedly paid workers time-and-one-half when they worked more than 40 hours in a workweek — up until they hit 47 hours. Beyond that point workers were only paid straight time, or their regular pay rate, the DOL said. The company would then use an “adjusted pay calculator” to incorrectly document that overtime hours had been paid, the Star Tribune reported.

The Department of Labor states that hourly workers must receive time-and-one-half overtime pay for any hours worked over 40 in a workweek.

The violations occurred between June 2014 and June 2016, according to a judgment from the United States District Court for the District of Minnesota.

The company, which places registered nurses, licensed practical nurses and certified nursing assistants in long-term care settings, will pay nearly $250,000 in back wages to 92 employees. On top of that, All Temporaries agreed to pay more than $150,000 in damages plus interest to workers.

Requests for comment from All Temporaries were not returned by production deadline Monday.

“We are pleased that these workers will receive their rightfully earned wages through this agreement and that the employer will be complying with the law going forward,” said DOL Wage and Hour Division District Director David King. “Our education and outreach efforts seek to ensure that companies understand their responsibilities. Our efforts on both fronts protect responsible employers and hard-working employees.”