The U.S. Department of Labor took legal action against Care at Home, a home healthcare provider, and its owners, Daniel Karp and Suzanne Karp, in April 2018. This action stemmed from an investigation revealing that Care at Home had violated the Fair Labor Standards Act by not paying overtime to its home healthcare workers and making improper wage deductions for food and lodging.
On September 17, 2021, a U.S. District Court in Connecticut issued a consent judgment, mandating that Care at Home and its owners pay $126,250 in back wages and liquidated damages to 51 employees within 30 days. Furthermore, on January 7, 2021, the court ordered the defendants to pay $22,413 in attorney’s fees to the Department of Labor due to their conduct during the litigation’s discovery phase. Unfortunately, the defendants did not comply with these court orders and failed to make the required payments.
In light of the defendants’ noncompliance with the court’s directives, the Department of Labor pursued and obtained a contempt order against them, imposing daily fines of $100 until they complied. Additionally, the Department secured a writ of execution to seize the owed back wages, liquidated damages, and attorney’s fees from the defendants’ corporate bank account. The U.S. Marshals Service executed the writ on December 14, 2021, and the recovered funds will be distributed to the affected workers.
Lessons learned from the case:
- Employers who fail to comply with federal wage laws and court orders may face significant legal consequences, such as fines, asset seizure, and legal action for their violations.
- This case highlights the importance of protecting employee rights and ensuring that workers are paid correctly under labor laws.
- Employers have a responsibility to understand and adhere to federal wage laws, including paying overtime when required and not making improper wage deductions.
If you want to know more about overtime regulations, read our guide on Connecticut Overtime Laws.
