Abilene Nurses Receive Back-pay After Department of Labor Investigation

Over 315 nurses and aides employed by Sears Methodist Retirement System Inc. in Abilene will receive back-pay for unpaid overtime.  The findings come after a U.S. Department of Labor investigation discovered violations of the Fair Labor Standards Act’s minimum wage, overtime and record-keeping provisions.

“This company took advantage of its employees by not paying them for all hours worked,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “Health care workers are among the lowest-paid employees in the nation, and this employer profited by paying these vulnerable employees less than they were legally due under the Fair Labor Standards Act.”

According to the Department of Labor, an investigation by the Wage and Hour Division’s Abilene Field Office found that the company deducted one hour from employees’ pay for lunch periods, even though employees took only half-hour breaks for lunch. Because these unpaid hours were not included in employees’ total time worked, overtime hours – those worked beyond 40 in a week – were not correctly calculated or compensated. Back wages also were found due to one employee because illegal deductions had been made for uniforms that caused the employee’s pay to fall below the federal minimum wage. Finally, the employer failed to maintain accurate time records.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week.