U.S. Department of Labor Investigation Finds Overtime Violations At Alabama Nursing Home Facility

MONTGOMERY, AL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), John Knox Manor Inc. – operating as John Knox Manor II – will pay $96,233 in back wages to 92 employees for violating the overtime and recordkeeping provisions of the Fair Labor Standards Act (FLSA) at its nursing home facility in Montgomery, Alabama.

WHD investigators found the employer violated the FLSA overtime requirements when it failed to include employees' shift differentials when computing their overtime pay. Instead, the employer based employees' overtime rates only on their base hourly pay. Excluding the shift differentials from the calculation resulted in the employer paying overtime at rates lower than those required by law. The Department also cited violations of the FLSA's recordkeeping requirements.

"The U.S. Department of Labor is committed to ensuring that employees receive the wages they have earned for all the hours they have worked," said Wage and Hour Division District Director Kenneth Stripling, in Birmingham. "If employers have questions about what the law requires, we offer a wide variety of tools to help them understand their responsibilities and encourage them to reach out to us for guidance to avoid violations."

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.