New Jersey Nursing and Rehab Center to Pay $260,000 in Back Wages and Liquidated Damages Following U.S. Department of Labor Investigation

NEWARK, NJ – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Sinai Center for Rehabilitation and Healthcare LLC – a nursing and rehabilitation center in Newark, New Jersey – will pay $130,000 in back wages and an equal amount in liquidated damages to 174 employees to resolve violations of overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined Sinai Center for Rehabilitation and Healthcare LLC - doing business as Sinai Post-Acute Nursing and Rehab Center - failed to pay for all of the hours employees worked. Instead, the employer paid employees only for their scheduled shifts, or for extra time that had been approved in advance, without regard to the hours they actually worked. Employees often worked beyond their scheduled shifts to transfer care appropriately, write notes, and secure medication. Additionally, the company failed to record accurate numbers of hours worked on payroll records.  

“Healthcare employees provide vital services and must be paid the wages they have legally earned,” said Wage and Hour Division District Director John Warner in Mountainside, New Jersey. “Employers must understand their obligations and responsibilities under the law. We encourage all employers to make use of the various tools we provide to help them understand and comply with the law, and to call us for assistance.”

“We are hopeful that settlements like this one will call attention to these common violations in the healthcare industry and remind other employers that they must comply with the law,” said Regional Solicitor Jeffrey S. Rogoff, in New York.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the toll-free helpline at 866-4US-WAGE (487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at https://www.dol.gov/whd.