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

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 concluded 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…

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