An Illinois home health care company must pay 69 workers a combined $1.1 million in back wages and damages after a court found the company improperly compensated employees for hours worked, the U.S. Department of Labor announced Tuesday.
The US District Court for the Central District of Illinois, Urbana Division, found Lee A. McDevitt, owner of Mattoon, Illinois-based Midwest Home Care, liable for back wages and damages after a DOL investigation determined that Mr. McDevitt paid daily fees to caregivers, many of whom worked 24-hour shifts.
The workers were compensated at the per diem rate regardless of the number of hours they worked, resulting in minimum wage and overtime violations, according to the DOL.
The court also found that McDevitt violated the filing requirements of the Fair Labor Standards Act.
The DOL said that following the investigation in early 2021, the company changed its payroll procedures and began compensating employees on an hourly basis and paying overtime for hours worked over 40 in a week.
The court assessed back pay in the amount of $562,389 and additionally ordered payment of an equal amount in liquidation, the DOL said.
It also rejected a claim by the company that it was not subject to the FLSA because it operated solely within Illinois.