Will the Trump Labor Department continue to focus on the Healthcare Industry with the current sharp focus?
In less than two months Donald Trump will become the 47th president of the United States. The President-elect Trump announced that he would nominate Republican Congresswoman Lori Chavez DeRemer to be the next Secretary of Labor (DOL). It remains to be seen if the Trump DOL will continue the current administration’s targeting of the healthcare industry.
Indeed, the DOL under President Biden had a busy year with a sharp focus to target the healthcare industry. The DOL released a dozen press release from Memorial Day to Labor Day relating to judgments or settlements with various healthcare entities. Settlements and judgments have ranged from five-figure sums to $36 million. A recent judgment against a group of Pennsylvania nursing facilities highlights the Department of Labor’s tenacity to pursue potential wage and hours violators within the healthcare industry. After an investigation, DOL filed suit against 15 healthcare facilities claiming that the employers had failed to pay overtime. A federal court in Pennsylvania awarded $35,8 million in liquidated damages and overtime backpay to 6,000 workers who worked in residential skilled nursing, rehab, and assisted living facilities. The 13-day trial involved nearly 50 witnesses. The court found that employers of these facilities committed actionable wrongdoing when they: (i), willfully failed to pay employees for every hour worked, including during meal breaks;(ii), failed to include all promised compensation including non-discretionary bonus and shift differentials when calculating overtime; (iii), avoided paying overtime by incorrectly classifying employees as exempted from the act’s requirements for overtime; and (iv), did not keep accurate records of the hours employees worked and the compensation due for those Most wage and hour issues can be avoided by following best practices and complying with compliance protocols. The DOL’s busy schedule is a cautionary story for employers in the healthcare sector. While it is unclear whether the incoming administration is going to continue to tighten up on the healthcare industry or not, implementing the correct protocols and procedures can ensure that there is minimal risk in an investigation, no matter who is in power. All employers should audit and assess their wage and hours practices. This includes (i) making sure that employees who are not entitled to overtime pay are classified correctly under federal and state laws; (ii), making sure that independent contractors are classified properly under federal and state laws; (iii), ensuring non-discretionary bonus payments and other compensation are included in the calculation for overtime purposes of non-exempt workers; and (iv), ensuring compliance with applicable law regarding meal periods and rest breaks. Employers in the health care industry should be prepared for a Department of Labor inspection. Working with an outside attorney to ensure compliance with federal and state wage-and-hour laws reduces the risk of a potential lawsuit and damages.
