IMPROPERLY RECOUPING WORKER'S OVERTIME PAY PUTS ANIMAL HOSPITAL IN THE DOGHOUSE
What do you call it when an employer forces workers to give their overtime wages back to the company?
The U.S. Department of Labor (DOL) calls it a violation of the Fair Labor Standards Act (FLSA). That’s what a Cincinnati-area animal hospital did—and explains why the DOL is looking to recover $108,000.00 from Hamilton Avenue Animal Hospital in back wages, liquidated damages and penalties.
The usual unpaid overtime case involves failing—whether negligently or intentionally—to record or credit an employee with all hours worked, resulting in unpaid overtime hours. Here, the Animal Hospital put its own unique twist on it by paying workers the overtime due to them, then forcing the workers (many of whom did not speak English) to return the overtime pay to the hospital in cash. The hospital then allegedly falsified payroll records to show overtime wages as having been paid.
The 21 workers affected are claimed to be owed $42,628.58 in overtime wages. In addition, the DOL is assessing $23,100.00 in civil penalties, and another $42,628.58 in liquidated damages under the FLSA. (Employers who violate the Act by not paying overtime are liable for double damages plus fines, making FLSA violations one of the costlier ways to break the law.)
This is the hospital’s fourth FLSA violation investigation. And by not paying overtime this time, the hospital may also be in contempt of court for violating a 2007 injunction ordering it to not violate the FLSA. While creativity has its place, dealing with employee wages is not one of them.
The DOL is clamping down on violators, and businesses would be prudent to endeavor to comply with employee wage payment laws, rather than risk the fines, fees and penalties that come with their violation.
