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November 7, 2004 DOL Home > ESA > WHD > Health Care > R.L.F. Survey Fact Sheet '98 |
Residential Living Facilities 1998 Compliance Baseline Fact Sheet
Overview Background Approach
Investigation Findings OverviewIn fiscal year 1998, investigators from the Employment Standards Administration’s Wage and Hour Division conducted 221 investigations of residential living, group home and other community-based care facilities to determine the level of compliance with the minimum wage, overtime and child labor provisions of the Fair Labor Standards Act (FLSA). This initiative – undertaken pursuant to the agency’s strategic goal to increase compliance in low-wage industries – is a component of Wage and Hour’s overall strategic plan under the Government Performance and Results Act.
BackgroundThe mission of the Wage and Hour Division is "to achieve and promote compliance with labor standards through enforcement, administrative and educational programs to protect and enhance the welfare of the Nation’s workers." The agency develops its strategic plan with a principal goal of achieving compliance in specified targeted low-wage industries. Beginning in 1997, Wage and Hour’s efforts to promote FLSA compliance in the health care industry have been concentrated in the long-term care industry, which typically includes nursing homes, adult family care facilities, assisted living facilities, group homes and home health care. The 1997 component of this low-wage initiative in health care consisted of an education/outreach campaign and an investigation-based survey in the nursing home industry that demonstrated that some 70% of nursing homes comply with the FLSA requirements in the employment of their low-wage workforce. Wage and Hour has maintained its focus in the long-term care industry by targeting the residential care (group home) segment of the industry. These residential care facilities, which offer long-term care in home-like environments with community settings, compete directly with the traditional nursing home industry. ApproachThe compliance survey was designed to enable Wage and Hour to:
Prior to conducting the residential living facilities survey, the Department conducted education and outreach with stakeholders in the residential living facilities industry, including employer associations; employee representatives; industry advocacy groups and other interested parties. The Department discussed the criteria for targeting the residential living facilities industry; explained the procedures for conducting the investigation-based survey; and provided industry facts sheets and other compliance materials. The stakeholders, in turn, provided feedback and extended their cooperation. In each of the 221 survey cases completed, Wage and Hour investigators visited the establishment; met with the employer or his/her representative; reviewed pertinent records and interviewed employees. The results were then analyzed to determine what, if any, particular patterns of violative behavior were common in the industry. Investigation FindingsSummary of Results
OvertimeThe greatest number of overtime violations occurred because employers improperly paid employees straight time for overtime hours-51 percent. Other common causes of overtime violations were:
Minimum WageIn 35% (33 of 95) of the residential living facilities where violations were found, employees were not paid the minimum wage. These violations occurred in large part because the employer:
Comparison to Nursing HomeWith the exception of child labor, nursing homes were more likely to be in compliance with the FLSA requirements. The findings on the overtime violations clearly demonstrate that the nature of the violations differs in frequency between the two types of establishments.
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