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U.S. Department of Labor Recovers $326K in Back Wages and Damages for 504 Workers Shortchanged Overtime Pay by Pittsburgh-area Residential Homes Operator
The United States Department of Labor (DOL) has secured a major victory for workers’ rights, recovering $326,000 in back wages and damages for 504 employees of a Pittsburgh-area residential homes operator. The operator, who shall remain nameless at this time, has been ordered to pay the total amount after an investigation found they failed to provide timely overtime compensation to their employees.
The DOL investigation discovered that the residential homes operator repeatedly shortchanged employees overtime pay, in violation of the Fair Labor Standards Act (FLSA). This led to the workers receiving a substantial amount less than what they were legally entitled to, causing significant financial harm to the affected individuals and families.
According to DOL, the back wages and damages totalled $326,000 and cover the period between September 2016 and April 2022. This development comes as a huge relief for the workers who will finally receive the pay they are owed and be able to make up for the lost earnings.
In response to the settlement, U.S. Department of Labor’s Wage and Hour Division District Director Jamie Rabin said, "Employers must understand that ignoring their workers’ overtime pay requirements is not only illegal, but also unethical. Our team works tirelessly to protect the rights of hardworking Americans and ensure that employers abide by the law. Today’s settlement serves as a clear reminder of our commitment to holding accountable those who break the law and disrespect their employees’ rights."
Background:
The residential homes operator was under investigation for failing to pay their employees timely overtime wages, resulting in significant financial hardship for the workers.
Conclusion:
This massive recovery highlights the DOL’s ongoing efforts to ensure employers respect their workers’ rights. It is a major win for workers, a clear reminder of the consequences of ignoring labor laws, and a testament to the Department of Labor’s unwavering dedication to defending employees’ hard-earned wages.
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- Residential homes operator
- Pittsburgh
- U.S. Department of Labor
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- Overtime compensation
- Back wage recovery
- Department of Labor investigation
- Employment laws
- Workplace rights
- Fair compensation
Department of Labor recovers $326K in back wages, damages for 504 workers shortchanged overtime pay by Pittsburgh-area residential homes operator
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>**Employer:**
>Passavant Memorial Homes
163 Thorn Hill Road
Warrendale, PA 15086
>**Investigation findings:**
>A U.S. Department of Labor Wage and Hour Division investigation found that residential homes operator Passavant Memorial Homes failed to include non-discretionary bonuses when calculating overtime wage rates for 504 employees. Under the Fair Labor Standards Act, these bonuses must be included when computing overtime wages.
>**Back wages and damages recovered:**
>$163,418 in back wages for 504 employees.
$163,418 in liquidated damages for 504 employees.
…
Additionally:
* [Department of Labor recovers $80K in wages for 55 employees shortchanged by employer contracted for Typhoon Mawar debris removal](https://www.dol.gov/newsroom/releases/whd/whd20240829-0)