STERLING HEIGHTS — After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Integrated Living Inc. will pay $173,787 in back wages and liquidated damages to 52 current and former employees for violations of overtime requirements of the Fair Labor Standards Act.
Investigators determined the residential care facility, based in Sterling Heights, paid its hourly home managers a reduced rate when they worked more than 50 hours in the work week.
Managers received their normal hourly rates for hours worked up to 50 per week, and receive the decreased rate for any additional hours. This resulted in managers receiving overtime rates lower than those required by law for hours worked.
“Employers have an obligation to understand and to comply with the labor laws applicable to their businesses,” said Wage and Hour Division District Director Timolin Mitchell in Detroit. “Arbitrarily lowering employees’ pay after they reach a specified number of hours shorts the workers and creates an unfair advantage for the employer over those who comply with the law. The Wage and Hour Division encourages employers to reach out to us for assistance to ensure they understand their obligations and to make use of the many tools we provide to help them.”
Employers who discover overtime or minimum wage violations may self-report and resolve violations without litigation through the Payroll Audit Independent Determination program which facilitates the resolution of potential violations.
For more information about the FLSA and other federal labor laws, call the Division’s toll-free helpline at 866-487-9243.