Department of Labor recovers $844K in back wages, damages for 158 workers illegally deprived of overtime wages by Louisiana home care providers

News Release

Department of Labor recovers $844K in back wages, damages for 158 workers illegally deprived of overtime wages by Louisiana home care providers

We Care Homes, Special Needs Unlimited misclassified employees, withheld overtime

NEW ORLEANS -The findings of two recent U.S. Department of Labor investigations show misclassification of employees as independent contractorsis an ongoing concern for home care industry workers in Louisiana and throughout the nation as the practice deprives them of their full wages and other important benefits.

Investigations by the department's Wage and Hour Divisionfound that two south Louisiana companion care providers - We Care Homes Inc. and Special Needs Unlimited LLC -misclassified a total of 158 employees as independent contractors and, by doing so, failed to pay them $422,137 in overtime wages earned for hours over 40 in a workweek.

"Home care workers employed by We Care Homes and Special Needs Unlimited typically worked long hours providing essential services for people unable to care for themselves. In exchange, they deserve to be paid their full wages," said Wage and Hour Division District Director Troy Mouton in New Orleans. "We are determined to protect workers' rights and hold employers accountable for meeting their legal obligations."

To resolve the violations of the Fair Labor Standards Act, the division recovered $422,137 in back overtime wages and an equal amount in liquidated damages for a total recovery of $844,274. Specifically, the division recovered $634,119 from We Care Homes for 123 affected employees and $210,156 for the 35 affected employees at Special Needs Unlimited LLC.

"Employers unsure about whether their pay practices comply with federal regulations should contact their local Wage and Hour Division office for compliance assistance," Mouton added.

Learn more about the Wage and Hour Division, including a search toolto use if you think you may be owed back wages collected by the division. The division protects workers regardless of where they are from and can communicate with workers and employers confidentially in more than 200 languages at 1-866-4-US-WAGE (487-9243).

Download the agency's Timesheet App, which is available in English and Spanish for Android and Apple devices, to ensure hours and pay are accurate.

Learn more about employee misclassification.

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