U.S. Department of Labor Investigation Results in South Florida Assisted Living Facility Paying $103,389 in Back Wages to 20 Employees

PEMBROKE PINES, FL – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Paradise Villa Retirement Home Inc. – operator of five South Florida assisted living facilities – has paid $103,389 in back wages to 20 employees for violating minimum wage, overtime, and recordkeeping provisions of the Fair Labor Standards Act (FLSA).

WHD investigators determined that Paradise Villa Retirement Home Inc. inaccurately classified caregivers as independent contractors rather than employees and paid them flat rates per day without regard to the number of hours they actually worked. This practice resulted in minimum wage violations when those flat rates failed to cover all the hours employees worked at the federal minimum wage of $7.25 per hour. Overtime violations resulted when employees worked more than 40 hours in a workweek but were paid only their flat rates with no overtime. WHD also cited recordkeeping violations when the employer failed to maintain records of the number of hours employees worked.

"The Fair Labor Standards Act requires employers to keep track of and pay employees for all the hours that they work," said Wage and Hour Division District Director Tony Pham. "The result of this investigation is an opportunity for other employers to review their pay practices to ensure they comply with the law. The Wage and Hour Division is determined to ensure that employers who fail to comply with the law do not gain an unfair competitive advantage over those who do."

The assisted living facilities operated by Paradise Villa Retirement Home Inc. involved in the investigations are:

• Paradise Villa at Sheridan, 11330 Sheridan St., Pembroke Pines;
• Paradise Villa at Pembroke Pines, 1145 NW 92 Ave., Pembroke Pines;
• Paradise Villa at Coral Springs, 4275 NW 67th Way in Coral Springs;
• Paradise Villa at Cooper City, 5190 SW 90th Terrace, in Cooper City; and
• Paradise Villa at Coconut Creek, 4130 NW 22 St., in Coconut Creek.

WHD provides a wide variety of compliance assistance tools to help employers understand their responsibilities and employees understand their rights.

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.