A Illinois-based skilled nursing operator is paying up but also pushing back against Department of Labor claims in a $3 million wage violation settlement.
“Petersen Health Care pays, and has always paid, its employees fairly and equitably for all time worked,” a company spokeswoman told McKnight’s Long-Term Care News on Thursday. “Although we do not agree with the Department’s position, the current economic environment dictated settlement of the matter.”
The department last week announced that Petersen Health Care, of Peoria, IL., was ordered to pay back $2,939,576 in back overtime wages to more than 3,000 caregivers to resolve the federal investigation.
The Department of Labor alleged the provider failed to pay the correct overtime after wrongly assuming the affected workers were not entitled to overtime pay. It also accused Petersen Health Care of failing to pay wages for meal periods of less than 20 minutes, not adding bonuses and other incentives to pay workers’ hourly rate when accounting for overtime, and failing to maintain accurate records of work hours.
Peterson told McKnight’s that it reached the settlement with the agency following a routine compliance review of compensation practices.
“While we have agreed to settle this matter, we do not agree with the department’s claims or the assumptions they made in determining their findings,” the spokesman said.
The company added that it regularly reviews and evaluates its pay practices to ensure its “hard working employees are being compensated fairly and equitably for all time spent caring for our seniors in need.”
“We are disappointed the department took this punitive action,” the spokesman added.
