Employee or Independent Contractor?

Pittsburgh home health agency charged $1.6 million for misclassification of workers 

home caregiver

From the Pittsburgh Post-Gazette, Lauren Rosenblattt reports that a Pittsburgh home health agency misclassified workers as independent contractors and now must pay back wages and damages. Lauren writes:

A Pittsburgh home health care agency must pay $1.6 million in back wages and damages after misclassifying health aides as independent contractors, a U.S. District Court ruled.

The court found Christian Home Healthcare Corp, which is based in East Allegheny, had violated the Fair Labor Standards Act. It ruled that the company incorrectly identified 546 home health aides as independent contractors rather than employees, a distinction that prevented the aides from receiving overtime pay.

In this case, the U.S. District Court for the Western District of Pennsylvania ruled that Christian Home Healthcare had misclassified the home health aides and then failed to pay overtime wages for instances when they worked more than 40 hours a week.

The agency did eventually change the classification but continued to pay “straight-time rates” for overtime hours rather than paying the overtime rate of one and one-times their regular rates.

Work weeks for some employees could be as long as 90 hours, according to the complaint filed with the District Court.

The agency also failed to keep a record of the number of hours worked by office staff, the ruling found.

Christian Home Healthcare officials could not be reached for comment by deadline.

The court’s action followed an investigation into Christian Home Healthcare by the U.S. Department of Labor’s Wage and Hour division.

“Health care workers risk their lives every day to care for our loved ones and remain on the front lines keeping our country healthy and safe,” Jessica Looman, the division’s principal deputy administrator, said in a prepared statement. “They deserve to be paid every cent they have earned.”

Christian Home Healthcare and its owner are now on the hook for $812,675 in back wages and an equal amount in liquidated damages to the affected home health aides, as well as $20,000 in civil money penalties.

Source: Pittsburgh home health agency charged $1.6 million for misclassification of workers | Pittsburgh Post-Gazette

Back to Top