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HEALTH CARE
OCTOBER 1-7, 2010
PUGET SOUND BUSINESS JOU
In wage disputes, compliance is the best defense
EE
In wage disputes, compliance is the best defense
mployers
face ofan epiHealth-care
providers
areworkrounding,
unpaid
time,
trainactual
and break
times.travel
Federal
andunpaidrent
mployers face
an epidemic
ployees
understand
economy.
LABOR
demic
wage-andespecially
susceptible
to ing time, unpaid
work time
before and Additionally,
after
state wage-and-hour
laws generally
require
wage-and-hour
classof
actions
and
and
follow wage-andt
LAW
class actions
and
wage-and-hour
lawsuitsemployers
these regular
misclassification
to proveshifts,
their compliance
with of employgovernment hour
investigations
as law
hour
requirements,
health- care indu
so accurate data
vital. failure
firms and thegovernment
Departmentinvestigaof Labor
and
managers
tentialtoinfraction
daysthat
because
health documentation,
care is ees, miscalculation
ofare
overtime,
rget the health-care
industry.
are
trained
interrupt
tions as law
firms and the Deonewell
of the
fewinsegments con- maintain accurate records and breach
of their of
Health-care
providers
are
facing
multitaking
proactive
respond
to a pati
partment of Labor target the
tinuing to grow in the current contract.
illion-dollar
penalties
and
judgments
for
a
measures
to
identify
Low-hanging
fruit
And
because
health-care industry.
economy.
A startling recent development connge of payroll
violations.providers
Many legal
andAdditionally,
correct any posystems
Health-care
areand
facthe urgent na- cerns court decisions allowing actions
un- may no
tential violations as
uman resource professionals in the indushandle the idios
Wage-and-hour class actions targeting
ing multimillion-dollar penalture of the health- care industry der the Racketeer Influenced and Corrupt
Sarah E.
they arise.
y identify wage-and-hour actions as the
work, technical
health-care providers jumped nearly 40
ties
and
judgments
for
a
range
lends
to potential
infrac- between
Organizations
(“RICO”),
a traditional
Theitself
existence
of a
imary area of employment-related risk.
hard to find, dra
percent
2008 andAct
2009,
and are on
Swale
payrollpreventative
violations. Many
tions, such as when nurses
claimonce
against
collar
and plaintif
compliance-training
There areofseveral
steps legal
potential
trackinto double
againwhite
this year.
Thecriminals
humancan
resource
terrupt their
meal fororganized
crime.
RICO
claims assert
that
program
mayoff-the-clock
signifi- reasons
alth-care and
providers
take toprofessionhelp ward
the increase
are no
mystery.
tigators.
als in the
industry identify wage-and-hour
break
to respond
health-care
providers
underpaid
em-epidemic
cantly reduce
damage
awards.to a patient or resident
wage-and-hour
actions.
Health-care
providers
are especially
sus- their The
as thecompliance
primary area
of employmentemergency.
as part lawsuits
of an intentional
scheme.
Employers
should also audit and update
Vigilantlyactions
monitoring
with
the health-care i
ceptible to ployees
wage-and-hour
these
their timekeeping
make sure timekeeping
deral and state
wage-and-hour
laws is
ago the
against seve
days because
health
care is one
the fines
few double
related
risk.
And systems
becausetoemployers’
RICO
violations
can of
carry
they accurately
employees’
itical. Employers
thatpreventative
all em- thatsteps
timekeeping
sys
segments continuing
to grow
in the
cur-Standards
Theremust
are ensure
several
systems record
may not
be wired to accurately
amount levied
for Fair
Labor
Act
minute
pay
dedu
health-care providers can take to help ward handle the idiosyncrasies of health-care infractions.
firms began
off wage-and-hour actions.
work, technical violations are often not
Proactive measures can discouragelaw
classthey
solic
Vigilantly monitoring compliance with hard to find, drawing the attention of action suits from even being filed and began
–
care facilities acr
federal and state wage-and-hour laws is potential plaintiffs and government inves- through a show of good-faith policies and
The resulting
critical. Employers must ensure that all em- tigators.
procedures – can greatly lower the amount
actions recently
ployees understand and follow wage-andThe epidemic of wage-and-hour suits in of any damage awards or penaltiesadministration
levied
to
hour requirements, and that managers are the health-care industry began three years against an employer.
and-hour investi
well trained in taking proactive measures ago against several large hospitals whose
Employers should regularly ask employof Labor – an inc
to identify and correct any potential viola- timekeeping systems applied automatic 30- ees about any trouble they have inpercent
accu- – specifi
providers.
tions as they arise.
a
minute pay deductions for meal periods. As rately recording their time. Performing
The existence of a compliance-training law firms began to recognize the potential, comprehensive payroll-compliance audit
program may significantly reduce damage they began soliciting plaintiffs in health- can detect vulnerabilities, especially in offW
awards.
the-clock trouble areas such as meal breaks,
care facilities across the nation.
Employers should also audit and update
The resulting uptick in wage-and-hour rounding, travel time and work done before
So far, the lar
their timekeeping systems to make sure actions recently prompted the Obama or after regular shifts. If your system cannot
concern “off-the
that they accurately record employees’ administration to add nearly 300 wage- accurately record actual work time and
thecorclaim that e
actual work and break times. Federal and and-hour investigators in the Department rect any variances – such as an interrupted
deduct 30-minu
state wage-and-hour laws generally require of Labor – an increase of more than 30 meal break – it’s time to overhaul the timeSimilar allega
employers to prove their compliance with percent – specifically targeting health-care keeping system. Training from the rounding,
ground
unpa
documentation, so accurate data are vital.
up remains one of the most criticaltraining
proac- time, u
providers.
and after regula
tive actions that an employer can take.
tion of employe
Low-hanging fruit
Work time
overtime, failur
Sarah E. Swale is a shareholder at Lane
records and bre
Wage-and-hour class actions targeting
So far, the largest number of lawsuits Powell and chair of the Firm’s Wage and
A startling re
health-care providers jumped nearly 40 concern “off-the-clock” claims – such as Hour Practice Group, and a member of the
cerns court dec
percent between 2008 and 2009, and are on the claim that employers automatically Firm’s Long Term Care and Seniors Housing
under the Rack
Client Service Team. She can be reached
at
track to double once again this year. The deduct 30-minute meal breaks.
Corrupt
Organi
reasons for the increase are no mystery.
Similar allegations concern improper swales@lanepowell.com or 206.223.7946.
a traditional cla
criminals and o
claims assert th
underpaid their
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intentional sche
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carry fines dou
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