Investigate, Don't Retaliate, When Wage Complaints Are Made

The U.S. Department of Labor (DOL) recovered $31,761 in back wages and damages for employees from a healthcare employer - an operator of assisted living communities in Tennessee.

The DOL found the employer denied overtime wages to seven care workers and illegally terminated an employee for questioning the pay practices.

Investigators determined the employer did not include on-call time when calculating overtime pay for the care workers, in violation of the Fair Labor Standards Act (FLSA).

Federal law prohibits employers from taking negative employment actions against employees for engaging in protected activities, "such as asking about their pay, filing a complaint or cooperating with a U.S. Department of Labor investigation."

The terminated employee will receive $30,000, and the seven other employees will share $1,761. "U.S. Department of Labor Recovers $30K From Tennessee Assisted Living Center Operator For Retaliating Against Employee" www.dol.gov (Sep. 05, 2024).

Commentary and Checklist

In fiscal year 2023, the DOL recovered $130,686,461 for 106,759 employees related to overtime violations, as well as $169,878 for 60 employees related to retaliation violations (making retaliation more costly per employee). "Fair Labor Standards Act" www.dol.gov.

Train managers and supervisors on provisions in federal law prohibiting retaliation against employees who express concerns about wage and hour practices or who file a charge with the DOL.

Even if the employees are mistaken, taking a negative employment action against them for complaining or questioning will result in a retaliation claim. Retaliation claims do not depend on the validity of the underlying alleged violation.

Here are some wage and hour investigation tips for healthcare employers:

  • Investigate every wage and hour-related complaint
  • Use a third-party investigator knowledgeable regarding federal, state, and local wage and hour laws
  • Proceed promptly and thoroughly
  • Have all pertinent documentation ready for the investigator
  • If the investigation finds no violation, explain the basis of the findings to the complaining employee
  • If the investigation finds a violation, work with legal counsel to determine the best way to remedy the violation without creating more risk
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