U.S. Department of Labor Investigation Results in Michigan Health Care Providers Paying $400,000 in Back Wages to 476 Employees

DETROIT, MI – Two Detroit area residential care facilities operated by Beaumont Health will pay $400,007 in back wages to 476 employees after investigations by the U.S. Department of Labor's Wage and Hour Division (WHD) found the employer violated the Fair Labor Standards Act's (FLSA) overtime and recordkeeping provisions. Investigators determined 283 employees at Beaumont Commons in Dearborn, Michigan, are due $250,659 in back wages, and 193 employees at Botsford Commons in Farmington Hills, Michigan, are due $149,348.

Investigators found Beaumont Health automatically deducted time for meal breaks from employees' recorded work time even when employees were unable to take those breaks. When breaks were not taken, these automatic deductions resulted in unpaid work hours and in overtime violations when employees worked more than 40 hours in a workweek. The employer's failure to record accurately the number of hours employees worked resulted in recordkeeping violations under the FLSA. Beaumont cooperated with WHD during the course of the investigation, and made necessary corrections enterprise-wide to ensure they pay employees for all hours worked, as the FLSA requires.

"Employers are responsible for ensuring that they pay all employees the wages they have legally earned, and for keeping accurate records of the number of hours they work," said Wage and Hour District Director Timolin Mitchell, in Detroit, Michigan. "We encourage employers to contact us for guidance, and to use the wide variety of tools we offer to help them fully understand their responsibilities. Violations like those found in this case can be avoided."

For more information about the FLSA, and other laws enforced by WHD, contact the Division's 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 including a search tool to use if you think you may be owed back wages collected by the Division.

WHD's mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD enforces Federal minimum wage, overtime pay, recordkeeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes. Additionally, WHD administers and enforces the prevailing wage requirements of the Davis Bacon Act and the Service Contract Act and other statutes applicable to Federal contracts for construction and for the provision of goods and services.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.