The home healthcare company was previously investigated in 2014 for violating the Fair Labor Standards Act.
Kynd Hearts Home Health Care, a home healthcare company, has been ordered to pay over $1.5 million in back wages and damages to its employees.
The summary judgment, obtained by the U.S. Department of Labor (DOL), comes after the department filed a complaint against the company in September 2020. An investigation by the department's Wage and Hour Division found that Kynd Hearts failed to pay certain non-exempt employees proper overtime.
Employees' hourly rates were reduced with the more hours they worked, and overtime was then calculated according to the reduced rate. The company also failed to show total premium pay for all overtime hours in a workweek in its payroll records.
In addition to the 2020 complaint, the Wage and Hour Division previously investigated Kynd Hearts in 2014 for pay practices violating the Fair Labor Standards Act.
"The employers knew their obligations to pay proper overtime rates and yet, they willfully disregarded the law and denied workers all of their hard-earned wages," Jessica Looman, principal deputy Wage and Hour administrator, said in a statement.
The DOL has also ordered the company to pay a civil money penalty of $226,512. The judgment permanently forbids Kynd Hearts Home Health Care from future FLSA violations.
"Hardworking healthcare workers will choose to work for employers who value them, pay them full wages and respect their rights," Looman said. "Employers who comply with labor law and appreciate the dignity of work will have a clear advantage when it comes to recruiting and retaining workers."
Jasmyne Ray is the revenue cycle editor at HealthLeaders.