U.S. Department of Labor Investigation Results in Seattle-Area Residential Care Company Paying $222,426 to 19 Employees for Overtime Violations

SEATTLE, WA – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Good Shepherd Adult Family Home – a residential care company based in Shoreline, Washington –will pay $222,426 in back wages and liquidated damages to 19 employees for violating overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA). The Department also assessed $17,442 in civil penalties against the employer for the willful nature of the violations.

WHD investigators found that workers at the Good Shepherd Adult Family Home facilities were required to provide around-the-clock care to residents, yet the employer failed to pay for all the hours employees worked in compliance with FLSA requirements. Specifically, the employer deducted 8 hours from employees’ recorded worktime for each overnight shift for sleep time, despite workers never being relieved from duty for an uninterrupted 8 hours. The employer made these 8-hour deductions during shifts of 24 hours, as well as during shifts of only 12 hours. Investigators also found the employer’s inaccurate time records resulted in recordkeeping violations under the FLSA.

“Employers who willfully violate basic federal labor laws hurt employees and gain an unfair advantage over employers who play by the rules,” said Wage and Hour Division Acting District Director Tuan Huynh, in Seattle. “We will continue to provide tools to help employers understand their obligations.” 

This marks the second time in the past five years that WHD has cited Good Shepherd Adult Family Homes for FLSA violations. Owner/operator Luz Hoff paid $17,442 in FLSA civil penalties for repeated and willful overtime violations following a 2015 WHD investigation of her facilities.

Good Shepherd Homes provides around-the-clock care for adults at five separate facilities in Shoreline.

Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available at www.dol.gov/whd including a search tool for workers who may be owed back wages collected by WHD.