LOS ANGELES – A recent federal investigation found the owner of seven Los Angeles residential care homes intentionally denied 22 workers more than $56,000 in overtime wages and then attempted to hide their actions by altering timekeeping records. The scheme proved to be a costly mistake.

U.S. Department of Labor Wage and Hour Division investigators found Home II U LLC – operated as Home 2 U and owned by Keith Cole – paid the affected workers straight-time rates for hours over 40 in a workweek, a violation of the Fair Labor Standards Act’s overtime rules. Investigators determined the employer was fully aware of federal overtime laws when they withheld overtime wages and illegally altered timekeeping records to cover up their actions.

“Healthcare workers routinely put themselves at risk to care for people who depend on them for life supporting care and assistance. These workers deserve to be paid all the wages they’ve earned,” said District Director Kimchi Bui in Los Angeles. “Home II U LLC made a conscious decision to deny these essential workers the overtime they earned and then attempted to cover-up their misdeeds. The outcome in this case should serve as an example of the costly consequences employers face when they shortchange their employees.”

As a result of the investigation, the division recovered $112,508 for the affected workers – $56,254 in back wages and an equal amount in liquidated damages – and assessed the employer $7,405 in civil money penalties for the...

Read Full Story: https://www.dol.gov/newsroom/releases/whd/whd20220713-0