WILLOW GROVE, Pennsylvania—A Pennsylvania homecare agency has been ordered to pay more than $3.8 million in back wages and damages after its employees accused it of withholding overtime pay.
The U.S. Department of Labor (DOL) reported that it obtained a consent judgment in the the U.S. District Court for the Eastern District of Pennsylvania requiring TriMED HealthCare LLC and its owner, Beverly Jordan, to pay $1,930,761 in back wages, an equal amount in liquidated damages and a civil money penalty of $180,141. The department originally filed its complaint on Sept. 2, 2020 claiming that Jordan and TriMed intentionally denied 433 employees full overtime wages.
“This is a significant recovery of back wages and liquidated damages for people who typically work for low wages and often struggle to make ends meet,” said Principal Deputy Wage and Hour Administrator Jessica Looman. “Employers must understand that federal law requires them to respect workers’ rights to be paid all of their earned wages, and that we will investigate those who fail to meet their obligations.”
The litigation and judgment was prompted by an investigation by the DOL's Wage and Hour Division that found TriMED HealthCare and Jordan paid direct care employees a regular ranging from $7.25 to $14 per hour. To avoid the expense of paying employees proper overtime, the employers allegedly lowered their regular rates when employees worked over 40 hours in a work week, and paid overtime compensation based on those rates. By lowering the rates, the judgment found, the employer concealed the fact that they paid all hours as straight time in violation of the Fair Labor Standards Act.
The division also said the employers paid some administrative employees straight time when overtime pay was required, failed to pay direct care workers for travel time between client homes and did not keep records as required.
“Employers who intentionally disregard the law and fail to pay workers their hard-earned wages will find that we will use every tool available, including enforcement actions in federal court, to hold them accountable,” said Solicitor of Labor Seema Nanda.
“Today’s workers can choose to work for employers who value them, pay them full wages and respect their rights as workers,” Looman said. “Employers who comply with labor law and appreciate the dignity of work will have a clear advantage when it comes to retaining and recruiting workers.”
