US Department of Labor recovers $121K in back overtime pay for 640 workers at 11 Detroit-area residential healthcare facilities

SOUTHFIELD, MI – A Detroit-area residential healthcare facilities management company has paid $121,525 in back overtime wages to 640 employees, following a U.S. Department of Labor review of its pay practices.

Investigators with the department’s Wage and Hour Division determined Advantage Consulting and Education Services – operating as Advantage Living Centers ­– paid non-discretionary bonuses to employees for perfect attendance, working in the Coronavirus isolation unit and for mentoring and training new employees, but failed to include the bonuses into an employee’s rate of pay when calculating overtime rates.

“Overtime rates must be calculated on an employee’s average hourly rate of pay, including any non-discretionary bonuses paid,” said Acting Wage and Hour District Director Angela Telang in Detroit. “The Wage and Hour Division offers assistance to employers and workers to help calculate overtime pay rates accurately.”

In July 2022, the Bureau of Labor Statistics reported that the 664,000 healthcare and social services workers left their positions and the field had more than 2 million openings. As the aging U.S. population grows and demand for home healthcare services increases, employment in a variety of healthcare sectors is projected to grow 16 percent from 2020 to 2030 – faster than the average for all occupations – adding about 2.6 million new jobs.

“As healthcare industry employers struggle to retain and recruit workers to provide the services necessary for their businesses to succeed, failing to pay workers their full wages means that these essential workers may look elsewhere for employment,” Telang emphasized.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. Workers and employers with questions can contact the division’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.

Download the agency’s new Timesheet App for android devices to ensure hours and pay are accurate.