A “common and costly” error by two Pennsylvania nursing homes can be averted by other providers, said a Department of Labor investigator in the wake of a more than half-million-dollar judgment against the providers.
Spring Creek Rehab and Nursing Center in Harrisburg and Laurel Lakes Rehab and Wellness Center in Chambersburg must pay the DOL more than $513,000 in damages and back wages to 231 employees.
The U.S. District Court for the Middle District of Pennsylvania in Harrisburg approved a consent judgment that was agreed to by the nursing homes and the DOL.
DOL Wage and Hour Division investigators found that the facilities violated the Fair Labor Standards Act between Aug. 1, 2019, through Jan. 27, 2021, by paying non-discretionary bonuses to nursing staff but failing to include the incentives in the rate of pay when calculating overtime rates.
The employers paid the bonuses for working specific shifts, for picking up extra shifts and for providing necessary support during the pandemic. Investigators also found that the employers improperly maintained records of hours worked.
“Our investigation found a common and costly error employers make, the failure to include non-discretionary bonuses in an employee’s regular rate of pay when calculating overtime rates,” Wage and Hour District Director Alfonso Gristina in a DOL statement Nov. 17.
Spring Creek SNF LLC operates Spring Creek Rehab and Franklin Center OPCO LLC operates Laurel Lakes. Spring Creek owes $461,910 and Laurel Lakes owes $51,457.
Wage and Hour investigations have recovered more than $28.6 million in back wages and damages for nearly 25,000 workers since it launched a focused initiative in 2021.
“The Wage and Hour Division encourages employers to use the online tools and assistance we offer to avoid compliance issues, and reminds workers that they can contact us with questions about their wages and rates of pay,” Gristina said.
