Provider to pay $165,000 in back pay, damages to resolve overtime violations
An Indiana-based long-term care company has agreed to pay nearly 600 workers back wages and damages after it allegedly failed to correctly calculate their overtime rates, the Department of Labor announced this week.
Ide Management Group LLC was accused of ignoring non-discretionary bonuses and shift-differentials when calculating paid employees' overtime rates, which violates the Fair Labor Standards Act, the DOL said.
The provider will pay 594 workers at 23 long-term care and senior living facilities in Iowa, Indiana and Illinois a total of $165,379 to settle the allegations. IMG has also implemented a new payroll service and software to ensure the errors won't be repeated.
A request for comment from IMG was not returned by production deadline Wednesday.
“Failing to include shift differentials and bonuses – such as those paid for attendance and retention – when computing an employee's regular rate of pay is a common overtime violation," said Regional Wage and Hour Division Administrator Karen Chaikin in a statement.