Spring Creek Rehab and Nursing Center in Harrisburg and Laurel Lakes Rehab and Wellness Center in Chambersburg owe a total of $513,368 in back wages and damages to 231 employees.
The U.S middle district court in Harrisburg approved a consent judgment agreed to by the nursing homes and the federal labor department.
Agency investigators found that between Aug. 1, 2019, through Jan. 27, 2021, the employers gave bonuses to employees for working extra during the pandemic. But they did not include the bonuses when they calculated overtime pay, which the law says must be at least 1 times their regular pay rate. As a result, the nurses weren’t paid as much as they should have been.
The complaint, filed by the labor department on June 17, said the centers failed to include the bonuses in the employees’ regular rate during overtime weeks and violated the Fair Labor Standards Act.
Non-discretionary bonuses are bonuses included in the regular rate of pay, and are typically given for taking on more shifts and additional responsibilities, attendance and quality of work. According to the labor department, “such bonuses are non-discretionary because the employees know about and expect the bonus. The understanding of how an employee earns one may lead to an expectation to receive the bonus regularly.”
Because they were not including those bonuses in the regular pay rate, the labor department said in the complaint, the nursing homes’ payroll records were inaccurate.
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