Dozens of Underpaid Peninsula Workers Getting $600,000

By Bay City News Service:

Two dozen Filipino caregivers who worked more than 40 hours a week but were paid well-below minimum wage by their Bay Area employers will receive more than $600,000 following a federal investigation, the U.S. Department of Labor announced Wednesday.

The owners of the five care facilities serving the ill and elderly reached an agreement with the Department of Labor after a two-year federal investigation, federal officials said.

A total of $637,048 will be paid to 24 employees, which breaks down to $318,524 owed in minimum wage and overtime back wages and $318,524 in liquidated damages, according to the labor department.

The owners did not properly record employee hours and many of the workers were paid less than $5 an hour although they worked up to 11 hours a day, five to six days a week, department officials said.

The facilities were Retirement Plus of San Carlos I, Retirement Plus of San Carlos II, Laurelwood Care Home, Three Sisters Care Home in San Mateo and Three Sisters Care Home II in San Mateo, according to the department.

Starting in February 2012, investigators from the department’s San Francisco wage and hour division looked into the facilities in violation of the Fair Labor Standards Act, department officials said.

The act requires employees to be paid at least $7.25 an hour and time-and-a-half of their hourly rate in overtime. Employees must also be paid commissions, bonuses and incentive pay and their employers must maintain accurate payroll records.

One caregiver in the investigation was misclassified as an independent contractor but had worked many hours without receiving minimum wage and overtime pay, according to the labor department. Such a case denied the worker of benefits and protections such as family and medical leave and unemployment insurance, labor department officials said.

Employers who misclassify their employees can lead to losses to state and federal treasuries, Social Security and MediCare funds, state employment insurance and workers’ compensation funds, department officials said.

“These workers perform a vital role as caregivers. Some should have earned as much as an additional $300 per week to meet legal requirements. That money could help save a family.” Susan Blanco, director of the department’s San Francisco wage and hour division, said in a statement.

Ruben Rosalez, the division’s San Francisco regional administrator, said in a statement, ”In an industry with a substantial record of labor violations and exploitation, these results should warn employers.

“We will hold employers accountable for noncompliance, and we urge workers to contact the department of they believe their rights have been violated,” Rosalez said.

(Image via Shutterstock)