Wage and Hour Division (WHD)

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DOUGLAS, Mich. -- One hundred twenty low-wage workers at Nan-Max Health Management Inc., operating as Harbors Health Facility, a nursing home in Douglas, have received a total of $30,753 in unpaid overtime wages following an investigation by the U.S. Department of Labor’s Wage and Hour Division.

The investigation revealed that the company had violated the overtime pay provisions of the Fair Labor Standards Act (FLSA) by failing to pay time and one-half employees’ regular rates of pay for hours worked beyond 40 hours in a single week. The company did pay overtime after 80 hours in a two-week period, but failed to pay overtime after eight hours in a day, thereby losing the two-week exemption allowed for this particular type of business operation.

The investigation covered the period from February 2005 to January 2007. The company agreed to pay the back wages and cooperated fully with the investigation.

“The department is committed to ensuring that all workers receive all wages they have earned,” said James Smith, director of the Wage and Hour Division’s district office in Detroit.

The FLSA requires employees to be paid the federal minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 in a week unless an employee is exempt. Employers must also maintain accurate time and payroll records.

Under the law, hospitals and residential care establishments may utilize a fixed work period of 14 consecutive days in lieu of the 40-hour workweek for the purpose of computing overtime. To use this exception, an employer must have a prior agreement or understanding with affected employees before the work is performed. This “eight and 80” exception allows employers to pay time and one-half the regular rate for all hours worked over eight in any workday and 80 hours in the 14-day period.

For more information, call the Department of Labor’s toll-free helpline at (866) 4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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