Wage and Hour Division (WHD)

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FORT LEE, N.J. -- Care One LLC has agreed to pay $416,853 in back wages to 3,329 employees after a U.S. Department of Labor investigation determined that the company violated the overtime provisions of the Fair Labor Standards Act (FLSA). The Fort Lee company operates a chain of skilled nursing and rehabilitation centers throughout the country. In North Carolina, the company operates the Blue Ridge Health Care Center in Raleigh.

The investigation, conducted by the department’s Wage and Hour division, found that, over a two-year period, the company did not pay the proper overtime rate to employees at 58 nursing and rehabilitation centers in New Jersey, Connecticut, Maryland, Massachusetts, North Carolina, Ohio and Virginia.

“Care One failed to include weekend shift differential pay in the employees’ regular rates when calculating overtime pay, resulting in violations of the FLSA,” said Joe Petrecca, director of the Wage and Hour Division’s Northern New Jersey District Office. “Once made aware of the problem, the company worked diligently with us to correct it.”

The FLSA requires covered, nonexempt employees to be paid the federal minimum wage for all hours worked and time and one-half their regular rates of pay for hours worked beyond 40 in a week. To calculate overtime, employers must count the earnings from all rates of pay and add them together. This total is then divided by the total number of hours worked at all jobs. 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. Information about the current exemption can be found on the Internet at www.dol.gov/fairpay.

Effective July 24, 2007, the federal minimum wage for covered, nonexempt employees is $5.85 per hour. The minimum wage will increase to $6.55 per hour effective July 24, 2008, and to $7.25 per hour effective July 24, 2009. For more information about the FLSA, 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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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.