Department of Labor recovers $98K in back wages, damages from residential care provider that misclassified workers, denied overtime pay in Pittsburgh

Summary

The U.S. Department of Labor’s Wage and Hour Division conducted an investigation into Sunrise Residential Care Services LLC, a healthcare services provider with multiple residences in the Pittsburgh area. The investigation revealed that the employer misclassified two workers as independent contractors, failing to pay them an overtime premium for hours worked over 40 in a workweek. Additionally, the employer did not maintain accurate records of daily and weekly hours worked for the misclassified workers or identify correct rates of pay on their payroll records.

As a result of the investigation, the employer was ordered to pay back wages totaling $49,310 and liquidated damages in the same amount. This outcome highlights the importance of proper worker classification and record-keeping.

The Wage and Hour Division emphasized that misclassifying workers as independent contractors denies them of their right to receive all of their hard-earned wages, benefits, and protections under federal law. The agency provides resources and assistance to help employers and workers determine the appropriate classification of workers and encourages workers who believe they may be owed back wages to seek assistance.

The investigation also served as a reminder of the importance of accurate record-keeping and compliance with federal labor laws. Employers are advised to carefully classify their workers and maintain accurate records to avoid potential penalties and violations.

Sources:

U.S. Department of Labor’s Wage and Hour Division press release
Wage and Hour Division’s investigative findings report
* Background information on Sunrise Residential Care Services LLC