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August 16, 2005
Labor Department Says Firms Owe $3.1 Million for Unpaid Overtime

The U.S. Department of Labor has filed a lawsuit against two Sacramento-based firms the department says violated the overtime provisions of the Fair Labor Standards Act, seeking $3.1 million in unpaid wages, damages, and interest for 31 employees.

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The workers provided around-the-clock care to adults with severe mental disabilities at six Sacramento-area facilities managed by Jasmine Hall Care Homes Inc. and Hall Care Homes Inc.

The department filed the suit in U.S. District Court for the Eastern District of California against the two companies and George K. and Estela Hall, who operated the care facilities. In addition to $1.57 million in back wages for work performed between June 1, 2002 and June 1, 2005, the suit seeks damages and interest, for a total of $3,151,089.

The suit alleges that workers typically lived in the care homes with the patients at least five days per week, working 24 hours a day and approximately 120 hours a work week.

Although the workers were salaried, they were not exempt from federal minimum wage and overtime laws, according to the department. Federal investigators say that when they computed total salary for all hours worked, employee pay dropped to somewhere between $2 and $4 per hour, well below the federal minimum wage of $5.15 an hour.

Read more information about the overtime exemptions of the FLSA at Compensation.BLR.com


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