McMillan’s Home Care Agency, based in New York City, has agreed to pay $1.09 million to settle a lawsuit brought by a class of caregivers, advocates from the National Employment Law Project (NELP) recently announced. Filed in April 2010, the lawsuit charged that the company underpaid its workers and denied them overtime despite the fact that they frequently worked more than 60 hours per week.
The class includes all current and former homecare workers employed by McMillan’s from April 12, 2004, through December 2, 2011—a group estimated to number around 1,500. The lawsuit is the first against a New York homecare agency to successfully reach classwide settlement over state wage and hour laws, NELP said.
Each worker will receive a pro rata share based on unpaid overtime hours worked. The settlement also prohibits McMillan’s from retaliating against employees who complain about wages and hours and requires the company to appoint an administrator to handle complaints.
While most homecare workers are currently exempt from the wage requirements of the federal Fair Labor Standards Act, New York State labor law requires that they receive minimum wages and overtime.