Health Care Press Release

U.S. DEPARTMENT OF LABOR INITIATIVE TO INCREASE COMPLIANCE WITH MINIMUM WAGE AND OVERTIME LAWS IN NURSING HOMES

The U.S. Department of Labor announced today the results of its investigation-based compliance survey in the nursing home industry. Labor's nursing home survey found 70 percent of the facilities surveyed were in compliance with minimum wage, overtime and child labor requirements.

"While I am pleased that the level of compliance is higher than our enforcement history suggested we cannot be satisfied," said Labor Secretary Alexis M. Herman. "A thirty percent rate of violation is much too high. When we look at the impact on individual health care workers, these numbers suggest that tens of thousands of employees are not receiving the compensation that they are entitled to under the law. That is unacceptable."

Of 288 randomly-selected nursing or personal care facilities investigated by the department's Wage and Hour Division in 1997, 86 were found violating the minimum wage, overtime or child labor provisions under the Fair Labor Standards Act (FLSA).

Investigators found that just over three-fourths, 96 of the 127 companies that Wage and Hour had previously investigated, were in compliance, and 106 of the 161 nursing homes, or two-thirds of those investigated for the first time, were in compliance with the FLSA.

FLSR overtime violations were by far the most common type of violation found. of the 86 cases with violations, 83 percent violated the overtime provisions. Most overtime violations occurred because employers incorrectly calculated their employees' regular rate of pay (the "time-and-a-half" rate upon which overtime pay is based). Many employers failed, for example, to include shift differentials or bonuses in the overtime computation, as required under the FLSA.

Nurses' assistants were most often affected by the violations, while other low-wage occupations such as dietary/food preparation workers and activities aides were also affected, though to a lesser degree.

Industry officials, led by the American Association of Homes and Services for the Aging (AAHSA), the American Health Care Association (AHCA,), National Center for Assisted Living (NCAL), and the Assisted Living Federation of America (ALFA) have indicated their willingness to join with the department in educating employers about the FLSA requirements.

The survey results provide information which helps the Labor Department and the nursing home industry to make more informed decisions to foster FLSA compliance. Many of the violations, for example, may best be addressed by vigorous education and outreach efforts at every level of the industry and to organizations that advocate on behalf of the nation's elderly.

Employee unions, including the Service Employees International Union (SEIU) and the United Food and Commercial Workers Union (UFCW) have also pledged their support to help the department educate employees who may be unaware of their rights under the law or simply afraid to seek help.

"I applaud these groups for their cooperation," continued Herman. "Only with the full and lasting commitment of all parts of the industry can we ensure that employers understand their obligations and that workers understand their rights. By coupling effective education and outreach with continued enforcement of the FLSA in this industry, we have the opportunity to ensure that this country's care givers are fairly compensated, that their wages are secure and their workplaces are safe, healthy and fair. In no other industry is the care and well-being of our family members so dependent on the quality of the workplace and the security of the workforce."

The department also announced today that it is expanding its evaluation of the long-term care industry by replicating the nursing home compliance survey in the residential living "group home" segment of the industry. Community-based living arrangements, such as group homes, are fast becoming an alternative to traditional and more institutional oriented care.

Beginning this month, the department will conduct an investigation-based compliance survey of some 250 randomly chosen group homes that provide care of the aged or otherwise challenged individuals in community-like settings. This initiative, part of the Wage and Hour Division's fiscal year 1998 plan under the Government Performance and Results Act (GPRA), will begin with outreach and education to the industry and other stakeholders. As with the nursing home survey, the agency seeks to establish FLSA compliance. This will include assessing the level of compliance with existing policies on specific issues such as the compensability of employees' sleep-time.

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