Wage and Hour Division (WHD)

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SAN FRANCISCO, CA -- The U.S. Department of Labor has filed suit against two Sacramento-based firms to recover $3.1 million in unpaid wages, liquidated damages and interest for 31 employees. 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.

“We are committed to ensuring that workers are paid all the wages they have earned,” said Secretary of Labor Elaine L. Chao. “As in this case, we will bring the full force of the department’s resources to fight for workers who have not received the pay they are due.”

The suit was filed 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 liquidated damages and interest, for a total of $3,151,089.

The suit follows an investigation by the Labor Department’s Wage and Hour Division, which found 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. When federal investigators 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.

The federal Fair Labor Standards Act requires that non-exempt employees earn no less than the federal minimum wage and one and one-half times their regular rate for hours worked over 40 per week. The FLSA also requires employers to maintain accurate time and payroll records. Last year, the Wage and Hour Division recovered nearly $200 million in back wages for more than 288,000 workers nationwide.

For more information about the FLSA, call the Sacramento Wage and Hour office at (916) 978-6123 or the Department of Labor's toll-free help line at 1-866-4US WAGE (1-866-487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.