PITTSBURGH, PA— The U.S. Department of Labor has successfully recovered $326,000 in back wages and damages for 504 employees of Passavant Memorial Homes, a Pittsburgh-area operator of residential homes. This recovery follows an investigation by the Wage and Hour Division, revealing significant discrepancies in overtime pay.
The investigation found that Passavant Memorial Homes failed to include non-discretionary bonuses when calculating overtime wage rates, a violation of the Fair Labor Standards Act (FLSA). The FLSA mandates that all non-discretionary bonuses are factored into the regular pay rate when determining overtime wages. This oversight resulted in employees being underpaid for their overtime hours.
The settlement includes $163,418 in back wages and an equal amount in liquidated damages, ensuring that the 504 affected workers receive the full compensation they are entitled to. These employees, who provide essential care services to individuals with intellectual disabilities, were deprived of their rightful earnings due to the miscalculation.
John DuMont, Wage and Hour Division District Director in Pittsburgh, highlighted the importance of protecting workers’ rights. “Passavant Memorial Homes workers deliver essential care and enable people in need to live with dignity. Yet, too often, they are shortchanged their hard-earned wages by employers that don’t include non-discretionary bonus payments in overtime calculations. We’re committed to protecting these workers and ensuring they get their full pay,” DuMont stated.
Founded in 1895, Passavant Memorial Homes operates 140 residential facilities throughout western Pennsylvania, offering vital support services. This recovery exemplifies the Department of Labor’s efforts to enforce fair labor practices and ensure compliance with federal wage regulations.
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