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An Illinois home health care company must pay 69 workers a combined $1.1 million in back pay and damages after a court found the company improperly compensated the employees for hours worked, the U.S. Department of Labor announced Tuesday.
The U.S. 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 Mr. McDevitt paid daily rates to caregivers, many of whom worked 24-hour shifts.
The workers were compensated with the daily rate regardless of the number of hours they worked, which resulted in minimum wage and overtime violations, according to the DOL.
The court also found that Mr. McDevitt violated recordkeeping requirements under the Fair Labor Standards Act.
The DOL said that following the investigation in early 2021 the company changed its payroll practices and began compensating employees on an hourly basis and paying overtime for hours worked beyond 40 in a week.
The court assessed back pay in the amount of $562,389 and additionally ordered the payment of an equal amount in liquidated damages, the DOL said.
It also dismissed a claim by the company that it was not subject to the FLSA because it operated solely within Illinois.