Wage and Hour Division (WHD)

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ESA-WHD New Release: [01/19/2001]
Contact Name: Libby Hendrix
Phone Number: 202-693-0069 
Release Number: USDL: 01-029

COMPLIANCE LEVEL WITH FEDERAL LABOR LAWS IN THE NURSING HOME INDUSTRY FALLS TO NEW LOW

WASHINGTON—A second investigation-based compliance survey of the nation’s nursing home industry by the U.S. Department of Labor’s Wage and Hour Division found only 40 percent of nursing homes in compliance with the Fair Labor Standards Act (FLSA).  This is a sharp drop from the 70 percent compliance level reported by the department in 1997.

"We are clearly disappointed with the declining compliance levels in this industry," declared Bernard E. Anderson, assistant secretary for the Employment Standards Administration.  "We understand and appreciate the significant challenges faced by the nursing home industry in securing and maintaining sufficient staffing levels, but we cannot excuse the industry’s failure to comply with this country’s most basic labor standards protections."

The department’s first survey in 1997 found that 70 percent of nursing homes were in compliance with the FLSA, which sets the federal minimum wage, overtime pay and child labor requirements.  The majority of violations in the 1997 survey involved failure to properly pay overtime.

In this second measurement of compliance, 136 nursing and other personal care facilities across the country were randomly selected for investigation.  Of the 136 establishments only 55 (40 percent) were found to be in compliance with the FLSA minimum wage, overtime and child labor provisions.

Violations of the overtime provisions were again the most common type of violation found, with 84 percent of the violating nursing homes not in compliance with these standards.  Unlike the 1997 survey, most of the overtime violations occurred when employers misclassified workers as FLSA-exempt administrative or professional personnel.

One hundred and eight minors were found illegally employed in 20 facilities.  Most were working either too many hours or too late in the evening.  Six minors were performing jobs in violation of the child labor hazardous occupation orders that prohibit minors from operating power-driven dough mixing or meat slicing equipment.  Most minors found illegally employed were working as dietary aides or food service workers.

Additional information about the provisions of the FLSA and the Wage and Hour Division’s health care initiative may be found at http://www.dol.gov/esa/whd/healthcare/surveys/index.htm.