Spring Creek Rehab and Nursing Center in Harrisburg and Laurel Lakes Rehab and Wellness Center in Chambersburg owe a total of $513,368 in back wages and damages to 231 employees.
The U.S middle district court in Harrisburg approved a consent judgment agreed to by the nursing homes and the federal labor department.
Agency investigators found that between Aug. 1, 2019, through Jan. 27, 2021, the employers gave bonuses to employees for working extra during the pandemic. But they did not include the bonuses when they calculated overtime pay, which the law says must be at least 1 ½ times their regular pay rate. As a result, the nurses weren’t paid as much as they should have been.
The complaint, filed by the labor department on June 17, said the centers failed to include the bonuses in the employees’ regular rate during overtime weeks and violated the Fair Labor Standards Act.
Non-discretionary bonuses are bonuses included in the regular rate of pay, and are typically given for taking on more shifts and additional responsibilities, attendance and quality of work. According to the labor department, “such bonuses are non-discretionary because the employees know about and expect the bonus. The understanding of how an employee earns one may lead to an expectation to receive the bonus regularly.”
Because they were not including those bonuses in the regular pay rate, the labor department said in the complaint, the nursing homes’ payroll records were inaccurate.
“This is a time type of violation that can be preventable. If employers have questions about how to pay bonuses to their employees, they can reach out to our agency. We have very valuable resources,” said Joann Gregory, assistant district director in Wilkes-Barre’s Wage and Hour District Office.
The consent judgment issued by the U.S. middle district court of Pennsylvania says Spring Creek and Laurel Lakes have to send their payments to the Department of Labor, and the department will then send the money to the affected employees. Spring Creek owes $461,910 and Laurel Lakes owes $51,457.
“Other industry employers should use the outcome of this investigation and the court’s action as a reminder to review their pay practices to make sure they are complying with the law,” said Oscar L. Hampton, Department of Labor regional solicitor in Philadelphia.
According to the U.S. Bureau of Labor Statistics, 664,000 healthcare and social services workers in September 2022 left their jobs.
In September, hundreds of nursing workers from 14 different facilities went on strike for better pay and hours. Some cited unfair labor practices. Spring Creek and Laurel Lakes were not listed as part of that strike.
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