Lawsuit seeks more than $60K in back wages, damages for 56 nursing assistants employed by Generations Home Care

Type of Action: Fair Labor Standards Act lawsuit filing

Names of Defendant(s): Sage Holding Group Ltd, doing business as Generations Home Care
Vincent F. Salvia

Complaint: The U.S. Department of Labor has filed a lawsuit in federal court to recover approximately $32,200 in back wages and an equal, additional amount in liquidated damages for 56 employees of Sage Holding Group Ltd. The company operates as Generations Home Care in Rochester Hills, Michigan. The suit also names the company’s owner, Vincent Salvia.

An investigation by the department’s Wage and Hour Division revealed that the employer failed to pay overtime when it incorrectly applied an exemption meant for workers who perform companionship services to hourly nursing assistants working in an assisted living facility. The employer paid straight time for overtime hours, despite the fact that the hourly nursing assistants did not work “in or about a private home,” as is required for the companionship services exemption to apply. Instead, the hourly nursing assistants worked in a large facility where many of the residents lived in secured units. The facility did not allow residents to cook, or to control who could access their residences, and required residents to have homecare services to live in the facility.

The division assessed a total of $61,600 in civil money penalties for willful and repeated violations of the FLSA. In 2010, the division investigated the company for paying straight time for overtime to nurses. The company paid back wages and agreed to comply with the FLSA in the future at that time.

Quote: “Nursing assistants provide dignified care for individuals who can no longer care for themselves. These hard-working attendants deserve to be properly compensated for their compassionate work,” said Timolin Mitchell, district director for the Wage and Hour Division in Detroit. “Generations Home Care is acutely aware of wage laws that are applicable to its employees. Yet, the company continues to fail to meet its wage obligations. This lawsuit demonstrates our commitment to ensuring that workers receive every penny they have rightfully earned. Other employees being paid in this manner are encouraged to notify the Wage and Hour Division.”

Information: The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular hourly rates for hours worked beyond 40 per week. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees. Additionally, the law requires employers to maintain accurate time and payroll records and prohibits retaliation against employees who exercise their rights under the law.

For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at www.dol.gov/whd/fmla/ .

Court: 2:16-cv-11627-BAF-MKM
U.S. District Court for the Eastern District of Michigan, Detroit