DOL’s $7M Wage Suit: Court Upholds Judgment Against Home Care Company

0
429

“Prestige’s HHAs are hired to travel and provide care to clients where they reside, rather than meeting them in hospitals or clinics,” the opinion read. The panel emphasized that common sense dictated the travel between clients’ homes was unavoidable and necessary for the work the aides were hired to do.

Willful Violations and Overtime Failures: The Bigger Picture

The court also upheld a finding that Prestige’s violations of the Fair Labor Standards Act (FLSA) were willful. This decision allowed the statute of limitations to be extended, including a larger group of affected employees in the compensation claim.

The case traces back to 2017 when the DOL first investigated Prestige for failing to pay overtime wages. The company reached a preliminary agreement with the DOL on corrective measures but later failed to meet its obligations, leading to the $7 million lawsuit filed in 2021 on behalf of 1,230 HHAs.

Signup for the USA Herald exclusive Newsletter

The Road to Legal Resolution: A Long-Standing Dispute

The DOL alleged that Prestige had systematically failed to compensate HHAs for the time spent traveling between clients’ homes and the office, violating the minimum wage and overtime provisions of the FLSA. Prestige’s appeal was rejected in June 2023, after the company argued that there was no evidence its aides traveled to multiple locations during their shifts. However, the court found ample evidence showing that the aides were indeed required to visit more than one client during their workdays, further solidifying the case against the company.