Molina Healthcare of New Mexico to pay $700K to more than 400 caseworkers after US Labor Department investigation finds them eligible for overtime

Employer: Molina Healthcare of New Mexico Inc.

Site: 400 Tijeras SE, Suite 200, Albuquerque, New Mexico

Investigation Findings: A U.S. Department of Labor Wage and Hour Division investigation found Molina Healthcare of New Mexico Inc. violated the overtime provisions of the Fair Labor Standards Act. The employer incorrectly applied an exemption from the FLSA’s overtime requirements, meant for salaried executive, administrative and professional employees, to case managers. To meet the criteria for exemption, employees must be paid a minimum guaranteed salary, and must perform job duties specific to that exemption. While case managers working for Molina Healthcare met the salary requirement, their job duties did not support the employer’s determination that these employees were exempt from overtime.

Resolution: Molina Healthcare of New Mexico will pay $701,855 in back wages to 409 employees, and will provide training to their managers on this issue.

Quote: “Denying workers their hard-earned overtime pay not only hurts them and their families, it also places law-abiding employers at a competitive disadvantage,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “This case should encourage other employers in this industry to take a close look at their own pay practices to ensure they are not paying workers in violation of the law. We will continue to educate employers and to conduct investigations to ensure workers receive a fair day’s pay for a fair day’s work.”

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