In the case of Walsh v. McDevitt, a federal court has mandated that Midwest Home Care, an Illinois-based provider of home healthcare, pay 69 workers $1.1 million in unpaid salaries and penalties. After conducting an inquiry, the U.S. Department of Labor discovered that the company had not paid its employees for all hours worked.
The company’s argument that it was immune from the Fair Labor Standards Act as it operates only in Illinois was rejected by the court. The court also decided that participating employees’ names may be preserved.
It was determined that the corporation had breached rules governing record keeping.
Midwest Home Care has altered its payroll procedures and will no longer commit such violations in the future. The case serves as a reminder of how common wage infractions are in the home healthcare sector.
Key lessons from this case:
- The healthcare provider’s argument that it was free from wage rules because it only conducted business in Illinois was rejected by the court. This demonstrates the importance of businesses realizing that regardless of their location or size, they may still be governed by federal labor rules.
- The case brings to light the widespread problem of pay theft in sectors like home nursing. Employer salary violations frequently affect low-paid workers in various industries.
- The court ruled that the corporation failed to adequately log employees’ hours which breached record-keeping regulations. To calculate the correct compensation for employees and guarantee compliance with wage standards, proper documentation is crucial.
If you want to know more about overtime regulations, read our guide on Illinois Overtime Laws.
