The Department Of Labor Recovers Back Wages From Home-based Care Providers

The U.S. Department of Labor (DOL) has recovered $844,274 in back wages in connection with employee misclassification at home-based care organizations.

Two recent DOL investigations found that employees at two Louisiana-based companies — We Care Homes Inc. and Special Needs Unlimited LLC — misclassified employees as independent contractors.

In total, 158 employees were misclassified as independent contractors. By misclassifying these workers the companies failed to compensate them $422,137 in overtime wages. This is an alleged violation of the Fair Labor Standards Act.

“Home care workers employed by We Care Homes and Special Needs Unlimited typically worked long hours providing essential services for people unable to care for themselves,” New Orleans Wage and Hour Division District Director Troy Mouton, said in a press statement. “In exchange, they deserve to be paid their full wages. We are determined to protect workers’ rights and hold employers accountable for meeting their legal obligations.”

The wage and hour division clawed back $422,137 in back overtime wages, and the same amount in liquidated damages for a total recovery of $844,274.

Overall, the division recovered $634,119 from We Care Homes for 123 employees who were impacted. It also recovered $210,156 for the 35 impacted employees at Special Needs Unlimited LLC.

Mouton advised employers unsure about whether their pay practices fall in line with federal regulations should reach out to their local Wage and Hour Division office.

In a separate investigation, the DOL also recovered $446,334 in back wages and liquidated damages from Inner Quality Services LLC and Sincere Client Care Services LLC. The two northwest Louisiana-based home care companies misclassified 88 workers as independent contractors.

Specifically, the division found that 24 employees of Inner Quality Services LLC and 64 employees of Sincere Client Care Services LLC were misclassified. The workers were paid straight-time rates.

The division recovered $70,106 in back wages and an equal amount in liquidated damages from Inner Quality Services for affected employees, and $153,061 in back wages and an equal amount in liquidated damages for the affected employees at Sincere Client Care Services.

“The Wage and Hour Division takes employee misclassification seriously, and we will continue to hold employers accountable when workers are denied their lawfully earned wages,” Mouton said in a statement. “Misclassification often results in workers losing critical workplace protections and benefits, including overtime pay. This practice is unfair to the workers and other employers who classify their workforce correctly.”

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