Reliable Home Health Care LLC misclassified employees as independent contractors, denied overtime pay and falsified payroll records, feds say.
A Dayton, Ohio home health care provider who misclassified its employees as independent contractors, denied workers overtime pay, and falsified payroll records to hide the violations must pay $133,661 in back wages to 63 of its employees.
An investigation by the U.S. Department of Labor’s Wage and Hour Division determined that Reliable Home Health Care LLC and its owner Sheikuna Omar misclassified home health aides and office staff as independent contractors. The employer then paid workers straight time for hours over 40 in a workweek, a violation of federal law, according to a press release from the Labor Department.
The division’s investigation disclosed that the company falsified its payroll records in an attempt to hide the violations of the Fair Labor Standards Act.
“Reliable Home Health Care workers provided around-the-clock, daily living assistance and delivered essential care to people in need, yet their employer denied workers their earned overtime wages and then falsified records to create an appearance of compliance with the law,” said Matthew Utley, Wage and Hour Division district director in Columbus, Ohio.
“Misclassification of employees as independent contractors and overtime violations are all too common in the home healthcare industry,” Utley said. “The U.S. Department of Labor will protect the rights of workers who commit themselves to the care of others and ensure they are paid all their legally earned wages so they, in turn, can take care of themselves and their families.”
Reliable Home Health Care provides home health care, skilled nursing care, physical and occupational therapy, and speech therapy services. The company also operates offices in Columbus and Cincinnati.
The Bureau of Labor Statistics reported in May 2022 that the 717,000 healthcare and social services workers left their positions and the field had more than 2 million openings. As the U.S. population ages and demand for home health care services increases, employment in a variety of healthcare sectors is projected to grow 16% from 2020 to 2030, adding about 2.6 million new jobs.
“For a healthcare employer to succeed in this competitive industry they must recruit and retain qualified workers,” Utley said. “When workers are not paid their full wages, they may look elsewhere for employment.”
“The U.S. Department of Labor will protect the rights of workers who commit themselves to the care of others and ensure they are paid all their legally earned wages so they, in turn, can take care of themselves and their families.”
Matthew Utley, Wage and Hour Division district director, Columbus, Ohio
Carol Davis is the Nursing Editor at HealthLeaders, an HCPro brand.
KEY TAKEAWAYS
A Dayton, Ohio home health care provider misclassified its employees as independent contractors.
The employer then paid workers straight time for hours over 40 in a workweek.
The provider must pay $133,661 in back wages to 63 of its employees.