Wage and Hour Division (WHD)

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CLEVELAND ,OH --

A chain of nursing homes based in Middleburg Heights, Ohio, has paid $92,987 in back wages to 393 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division. “The Labor Department is committed to vigorously enforcing the law to ensure that employees are paid all of the wages they are owed,” said Barry Haber, district director of the department’s Wage and Hour Division in Cleveland.

The department’s Wage and Hour Division investigated Royal Manor Management Inc. under the Fair Labor Standards Act (FLSA), the federal wage and hour law. The investigation disclosed minimum wage violations for some employees who were not paid for all hours worked; overtime violations for salaried employees who earned less than $455 per week, failed the duties tests and were misclassified as exempt from overtime pay; and violations caused by the failure to include bonuses and premium pay in the calculation of the overtime pay rate. Royal Manor Management also failed to keep an accurate record of hours worked by employees. The violations occurred during the period January 2003 through January 2005.

Royal Manor Management does business as Austinburg Nursing & Rehabilitation Center, Austinburg; Blossom Nursing & Rehabilitation Center Inc., Salem; Darlington Nursing & Rehabilitation Center Ltd., Toledo; Palm Crest Bellaire Inc., Cleveland; Palm Crest West Inc., Elyria; Palm Crest East Inc., Elyria; Sensi-Care, Elyria; Royal Manor Management, Middleburg Heights; Royal Oak Nursing & Rehabilitation Center, Middleburg Heights; and Willow Park Nursing & Rehabilitation Center Inc., Cleveland, Ohio.

The FLSA requires covered employees to be paid the minimum wage for all hours worked and time and one-half the regular rate of pay for hours worked over 40 in a week. Non-discretionary bonuses and premium pay must be added to straight-time earnings to calculate the overtime pay rate. Employers must also maintain accurate time and payroll records.

The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional and outside sales employees. To qualify for exemption, employees generally must meet certain job duty and salary tests. Under the Labor Department’s new “Overtime Security” rules, workers earning less than $23,660 per year – or $455 per week – are guaranteed overtime protection.

In addition to wage violations, the department found two minors under 16 years of age who worked more hours or later in the evening than permitted by federal regulations that protect young workers. Royal Manor Management agreed to pay a $990 fine for these violations.

The Wage and Hour Division recovered nearly $200 million in back wages in fiscal year 2004 for more than 288,000 workers. For more information about the FLSA, call the Department of Labor’s toll-free help line at 1-866-4USWAGE (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.