FENTON, MI – A Michigan home healthcare provider is liable to pay more than $93,000 in back overtime pay and damages to 23 workers after failing to update its pay practices when a law changed, a federal judge ruled.
Independent Home Care of Michigan LLC and its owners Mary Clark and Kathryn Flick owe $93,331 to companion workers, including $46,665 in back wages, after failing to pay overtime from Jan. 23, 2018, through June 1, 2019.
Judge Victoria A. Roberts of the U.S. District Court for the Eastern District, Southern Division of Michigan issued her findings against the employers on May 17 after a two-day bench trial on May 9-10.
The Fenton-based company was in violation of the Home Health Care Final Rule of 2013 that requires staffing agencies to pay overtime to companion services workers after 40 hours. The law went into effect on Jan. 1, 2015. Investigators with the U.S. Department of Labor Wage and Hour Division also found the company failed to keep accurate records of hours worked and rates of pay, which are violations of the Fair Labor Standards Act.
Claiming ignorance of the changed law, the company argued against paying damages. However, the court found the company failed to take active steps to comply with the law and ordered damages to be paid.
“Complying with changes in this highly publicized law is the responsibility of employers in the healthcare industry,” said Wage and Hour Regional Administrator Michael Lazzeri.
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