Investigators determined SafeCare LLC in Franklin misclassified many employees as independent contractors and paid them straight-time rates for all hours worked, including for overtime hours over 40 in a workweek. In New Iberia, the division found ApexCare LLC denied overtime to six workers for hours over 40 in a workweek.
“Home care workers are among the highest employees misclassified as independent contractors, paid straight time for overtime and not paid for all the hours they worked,” said Wage and Hour Division District Director Troy Mouton in New Orleans. “Misclassification deprives workers of protections under wage and hour laws and allows employers who misclassify workers an unfair advantage over competitors who comply with the law. These violations can lead to serious legal consequences for employers.”
Specifically, the division recovered $176,082 in back wages and an equal amount in liquidated damages from SafeCare for affected employees, and $1,396 in back wages and an equal amount in liquidated damages for the affected employees at ApexCare to resolve their Fair Labor Standards Act violations.
“Employers with questions about whether their pay practices comply with federal regulations should contact their local Wage and Hour Division,” Mouton added.
Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. The division protects workers regardless of where they are from and can communicate with workers and employers confidentially in more than 200 languages at 1-866-4-US-WAGE (487-9243).
Download the agency’s new Timesheet App, which is available in English and Spanish for Android and Apple devices, to ensure hours and pay are accurate.
Learn more about employee misclassification.
