Category Archives: employment

Stolen Money: Wage Theft by Employers Common

Today’s post comes from guest author Brody Ockander, from Rehm, Bennett & Moore.

We all know that money is stolen from hard-working people every day in the form of robberies, burglaries and other thefts, but you might be surprised to learn that employers steal more money from hard-working people than robberies, burglaries, larcenies and auto thefts combined.

Although these numbers are based on 2012 data, the same probably holds true still today. The most unfortunate part of these statistics is that the victims of wage theft are usually the people who can afford the theft the least.

What is wage theft?

“Wage theft covers a variety of infractions that occur when workers do not receive their legally or contractually promised wages,” according to wagetheft.org.

“Common forms of wage theft are non-payment of overtime, not giving workers their last paycheck after a worker leaves a job, not paying for all the hours worked, not paying minimum wage, and even not paying a worker at all.”

What is even more sobering is to think based on these statistics: they get the numbers regarding traditional theft from what is reported to police, whether it is recovered or not. They get the data for wage theft based on what is: reported, looked into, taken to court, and won back for employees. So, I would be willing to assume that the numbers of wage theft are actually much larger, in reality.

Fortunately, there are remedies under state and federal laws to recover from those thieving employers engaging in wage theft. Even if it is something that seems small, like employers keeping a percentage of tips, it is still wage theft and is actionable in civil court. Contact a lawyer if you suspect your employer of engaging in the activities described above.

Prior results do not guarantee outcomes.
Attorney Advertising.

Why CNAs and Home Health Aides Should Care about the Fight over a Federal Regulation

Today’s post comes from guest author Jon Rehm, from Rehm, Bennett & Moore.

A U.S. District Court in Washington, D.C., recently struck down a federal regulation that would mandate that home health aides are paid the minimum wage and paid overtime under the federal Fair Labor Standards Act (FLSA). Though the decision will likely be appealed, this decision is still a bad decision for the men and women who do the hardest jobs in health care – home health aides and certified nursing assistants.

Why home health aides aren’t covered by federal wage laws

Home health aides were exempted from the FLSA 40 years ago in order to make caring for the elderly less expensive. However, companion care has become a big and very profitable business. An index of publically traded home-health-care stocks has consistently outperformed the stock market as a whole for the last 13 years. This profitably is due in part to the minimum wage and overtime exemptions for home health aides.

How the home health exception affects other jobs in the medical field

The federal government estimates that nearly 1 million are employed as home health aides, while private sources estimate that number as 2 million. Home health is also a fast-growing field of employment. Home health aides essentially have the same job duties as certified nursing assistants (CNAs). CNAs are generally covered by minimum wage and overtime laws, but workers with the same skills and same duties are exempt from those laws if they are working as home health aides. CNA wages are pushed down by home health aide wages, which are exempt from federal wage laws.

Why pay is about more than wages

A recent study of CNAs showed that nearly 60 percent of CNAs report injuries during a 12-month period. The injury rate is similar for home health aides. The study also showed that higher-paid CNAs were injured less frequently than lower-paid CNAs. The study indicated that organizational factors really drove injury rates among CNAs. In other words, in settings where CNAs are truly valued, paid fairly and trained, the injury rates are lower. But if CNAs are treated as low-wage, high-turnover cogs in a machine, then injury rates are higher. Low pay for CNAs and home health aides isn’t just an issue for employees. Low pay for home health aides and CNAs has been linked to poor patient care.

While the Obama administration has been criticized for being too aggressive in enforcing the FLSA, the U.S. Department of Labor announced that they will delay enforcement of the home health aide regulation until July 2015. This assumes courts will let the Department of Labor actually enforce the regulation. Anyone concerned about this issue should contact their members of Congress to support legislation that ends the home health aide exception. People should also contact their state legislators to support legislation that would ensure that home health aides are covered by state wage and hour laws.

Prior results do not guarantee outcomes.
Attorney Advertising.