Wage Protections for RCFE Staff Improve Quality of Care

In 2014, CANHR published an article in the Advocate about wage protections for RCFE staff.  The article included summaries of actions taken by the U.S. Department of Labor’s Wage and Hour Division (WHD) against RCFE operators for wage violations.  Unfortunately, RCFEs continue to deny employees rightfully earned wages, as described in the recent cases below.

The Fair Labor Standards Act (FLSA) guarantees RCFE employees minimum wage and overtime pay.  The WHD is responsible for enforcing the FLSA, and ensuring that RCFE staff are paid properly for all the hours they work. The FLSA applies to residential care facilities, whether the institution is public or private or is operated for profit or not-for-profit. 

Although the RCFE industry is a multi-million dollar industry with enormous profit margins, its success is not being shared with direct care staff.  The WHD continues to find violations in the residential care field, especially in the Bay Area. In the 2015 fiscal year, the WHD’s San Francisco Office concluded more than 100 investigations of residential care facilities and nursing homes, resulting in $3 million in back wages and damages for more than 475 employees. Within the past two years, the WHD has taken action against the following RCFE operators for failing to pay proper wages:

San Miguel Homes for the Elderly (Union City)

- Consent judgment requiring payment of $425,000 in back wages and damages to 26 caregivers.

- Investigation found egregious minimum wage and overtime violations as the company made caregivers work around the clock without paying them for all of their hours.

- Company’s owners had employees falsify timesheets, and threatened to sue workers suspected of cooperating with the investigation.

Walnut Creek Willows (Walnut Creek), Elizabeth’s Care Home 1 and 2 (South San Francisco), Samantha’s Care Home (San Bruno),

New Haven Care Home (Union City), Rayzel’s Vila and Villa San Lorenzo (San Lorenzo)

- Consent judgment requiring payment of $643,992 in unpaid wages and damages.

- Employers misclassified caregivers as independent contractors, paid them a flat monthly salary well below minimum wage, provided no premium for overtime even though employees often worked more than 60 hours per week, and failed to keep any records of the employees’ hours worked.

LQC Care Home, Richlee Care Home, White Oaks Manor, Cerezo Residential Care Home, Ross Senior Care Home (Silicon Valley)

- Employers will pay $359,000 in back wages and an equal, additional amount in liquidated damages to 32 workers.

- WHD found that owners paid most workers a flat rate per day for working at least 12 hours per day that failed to cover at least $7.25 per hour, failed to pay overtime when they worked more than 40 hours per week, and failed to record the hours actually worked by employees.

St. Elizabeth Home for the Elderly I and II (Covina), St. Therese Home for the Elderly and St. John’s Home for the Elderly (San Dimas), St. Anthony’s Home for the Elderly, St. James Home for the Elderly, St. Michael’s Home for the Elderly (Glendora)

- Employer will pay $103,724 for overtime violations to 40 employees.

- WHD found that employer paid employees only for their scheduled hours, and failed to pay for any time spent caring for patients or performing other work-related duties before or after their scheduled shifts.

Tricia’s Care Home, Kelly’s Home, Cortez Home, Shoreview Home (San Mateo), Albright Home and Olympic Home (South San Francisco), Flora’s Home (Burlingame)

- Employer will pay $101,791 in back wages and an additional $101,791 in liquidated damages to 53 workers.

- WHD found that employees received monthly salaries that, in many instances, did not cover the federal minimum wage of $7.25 per hour, and didn’t receive legally required overtime pay for hours worked beyond 40 in a workweek.

- WHD also found that employer failed to maintain accurate records of work hours and pay, and misclassified some workers as independent contractors instead of employees.

Many elderly people and people with illnesses, injuries and disabilities rely on the vital services provided by RCFE staff. Because of their hard work, over 170,000 Californians are able to live more independently in community settings. The FLSA guarantees that these professionals receive the wage protections they deserve while protecting the rights of individuals to live in the community. Fair wages are critical in protecting one of California’s fastest-growing workforces, and one made up predominantly of women, women of color and immigrants. Lack of adequate pay increases turnover, destabilizes personnel, and puts RCFE residents at risk.

If you suspect that RCFE staff are not being paid proper wages, contact the WHD at 866-487-9243 or visit www.wagehour.dol.gov. For more information, see U.S. Department of Labor Fact Sheet #33:  Residential Care Facilities (Group Homes) Under the Fair Labor Standards Act - http://www.dol.gov/whd/regs/compliance/whdfs33.pdf. See also Department of Labor newsletters at http://www.dol.gov/_sec/newsletter/.