Six Beaumont Affiliated Health and Rehabilitation Centers in the metro Detroit area have paid $915,223 in back wages to 1,389 employees after an investigation by the U.S. Department of Labor Wage and Hour Division (WHD) found the Centers in violations of the Fair Labor Standards Act (FLSA).
Investigators found the facilities — managed by Premier Healthcare Management Inc. in Bloomfield Hills, Michigan — failed to pay employees for time they worked during their meal breaks, and before and after their scheduled shifts. The employer automatically deducted meal breaks from employees’ work time. But workers were often unable to take those breaks. Work performed prior to and after employees’ scheduled shifts was neither recorded nor paid for.
“The U.S. Department of Labor is committed to ensuring that every employee receives the wages they have rightfully earned,” said Wage and Hour District Director Timolin Mitchell in Detroit. “Other employers should use the outcome of this investigation as an opportunity to review their own pay practices, and ensure that they are in compliance. We encourage employers to contact us for guidance, and to use the wide variety of tools we offer to help them fully understand their responsibilities.”
In Michigan, workers racked up about $429 million in lost wages between 2013 and 2015, according to a 2017 report by the Economic Policy Institute, a left-leaning policy think tank in Washington, D.C. Nationally, 1.4 million employers owed $45.6 billion in taxes, interest and penalties, according to a 2015 report by the U.S. Treasury Department.
In April, Michigan Attorney General Dana Nessel announced her office will establish a Payroll Fraud Enforcement Unit. Democratic lawmakers also have introduced a package to crack down on wage theft.
In addition to paying back wages, Premier Healthcare Management has agreed to conduct training for its employees, to provide WHD Fact Sheet #33 on Residential Care Facilities to all employees, and to conduct quarterly reviews of payroll and time records to ensure compliance with wage laws.
The investigation recovered back wages for employees at Beaumont Affiliated Health and Rehabilitation Centers in West Bloomfield in West Bloomfield, Woodward Hills in Bloomfield Hills, Evergreen in Southfield, Shelby in Shelby Charter Township, as well as Shorepoint and the Shorepoint Village Assisted Living Facility, both located in Saint Clair Shores.
For more information about the FLSA, and other laws enforced by WHD, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available online, including a search tool to use if you think you may be owed back wages collected by the division.