U.S. Department of Labor Investigation Results in North Carolina

After an investigation by the U.S. Department of Labor (DOL), Care Providers of Wilmington, Inc. – a healthcare agency located in Wilmington, North Carolina – has recently paid $90,640 in back wages and liquidated damages to 21 employees for violating minimum wage, overtime and other record keeping violations of the Fair Labor Standards Act (FLSA).

DOL investigators determined that the agency failed to pay employees for travel time between patients’ homes when they visited more than one client in a day. Instead, employees were paid only for the time spent in each client’s home. The employer also incorrectly classified some employees as independent contractors when they worked more than 40 hours within a one week period of time. These practices resulted in FLSA violations when the employer failed to pay its employees overtime for any hours over 40 that they worked in a one week period.

Additionally, the employer violated FLSA record keeping requirements when it failed to maintain accurate payroll records which reflected the actual number of hours employees worked each day and week and the amounts of wages paid to each employee.

The FLSA has the following payroll record keeping requirements for all employers:

1. Employee’s full name and SSN
2. Employee’s address including zip code
3. Birth date (if younger than 19)
4. Sex and occupation
5. Time and day of the week when the workweek begins
6. Total hours worked each day
7. Total hours worked each workweek
8. Basis on which each employee is paid
9. Regular hourly rate of pay
10. Total daily or weekly straight time earnings
11. Total overtime earnings for each week
12. All additions to or deductions from wages
13. Total wages paid to each employee each pay period
14. Date of payment and the pay period covered by the payment

The DOL recovered a record $322 million in back wages owed to workers in Fiscal Year 2019.

A company’s best defense against the potential expense and aggravation related to federal or state law violations is to proactively review and revise as needed all Human Resources policies, handbooks, hiring procedures, compensation, benefits, training programs, communications tools and other functions. Read more about HR Audits