The U.S. Division of Labor (DOL) has recovered $844,274 in again wages associated to employee misclassification at dwelling well being care companies.

Two current DOL investigations have discovered that staff of two Louisiana-based firms – We Care Houses Inc. and Particular Wants Limitless LLC – misclassified staff as unbiased contractors.

A complete of 158 employees have been incorrectly categorised as unbiased contractors. By misclassifying these employees, the businesses didn’t compensate them $422,137 in time beyond regulation. That is an alleged violation of the Truthful Labor Requirements Act.

“House care employees employed by We Care Houses and Particular Wants Limitless usually labored lengthy hours and offered important providers to individuals who have been unable to take care of themselves,” Troy Mouton, director of the New Orleans Wage and Hour Division District, stated in a information launch. “In return, they should obtain their full wages. We’re dedicated to defending employees' rights and holding employers accountable for assembly their authorized obligations.”

The Wage and Hour Division recovered $422,137 in unpaid time beyond regulation, and the identical quantity in damages for a complete restoration of $844,274.

In whole, the division has recovered $634,119 from We Care Houses for 123 staff who have been affected. It additionally recovered $210,156 for the 35 affected staff of Particular Wants Limitless LLC.

Mouton suggested employers who’re not sure whether or not their payroll practices adjust to federal rules to contact their native Wage and Hour Division workplace.

In a separate investigation, the DOL additionally recovered $446,334 in again wages and damages from Internal High quality Providers LLC and Honest Shopper Care Providers LLC. The 2 northwest Louisiana dwelling well being care firms incorrectly categorised 88 employees as unbiased contractors.

Particularly, the division discovered that 24 staff of Internal High quality Providers LLC and 64 staff of Honest Shopper Care Providers LLC have been misclassified. The employees have been paid a set price.

The division recovered $70,106 in again wages and an equal quantity of compensatory damages from Internal High quality Providers for affected staff, and $153,061 in again wages and an equal quantity of compensatory damages for affected staff from Honest Shopper Care Providers.

“The Wage and Hour Division takes employee misclassification critically, and we’ll proceed to carry employers accountable when employees are denied their rightfully earned wages,” Mouton stated in an announcement. “Misclassification usually causes staff to lose important office protections and advantages, together with time beyond regulation pay. This apply is unfair to staff and different employers who accurately classify their workforce.”