Thursday, January 30, 2025
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DOL recovers $35.8M in again wages and damages from Pittsburgh nursing services


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Dive Temporary:

  • A Pittsburgh nursing facility operation and its payroll workplace are on the hook for $35.8 million in again wages and damages to six,000 present and former staff in what the U.S. Division of Labor in a press release Tuesday referred to as one of many U.S.’s largest wage recoveries.
  • Samuel Halper, CEO of Complete Healthcare Administration Companies and its payroll workplace, CHMS Group, oversaw and carried out the unlawful pay practices, DOL present in a July 22 judgment. 
  • The WHD discovered that administration at 15 totally different nursing services “willfully” denied staff their wages for all hours labored, together with throughout meal breaks, in violation of the Truthful Labor Requirements Act. Administration additionally factored nondiscretionary bonuses and shift differentials into extra time pay calculations, amongst different violations. 

Dive Perception:

Halper’s nursing properties skirted round “paying extra time by incorrectly treating staff as exempt from the [FLSA’s] extra time necessities,” DOL stated. Furthermore, the nursing house services and the payroll places of work did not hold ​“correct” information of the hours staff labored and the compensation due therein.

Solicitor of Labor Seema Nanda referred to as the Pennsylvania federal court docket’s judgment on this case “decisive and historic,” and a affirmation of “the Division of Labor’s place that the employers dedicated wage theft deliberately.”

Wage and Hour Administrator Jessica Looman condemned wage theft, notably within the healthcare trade. “Far too usually, our investigations discover that staff who present important care companies to those that want them most will not be receiving their hard-earned wages from employers,” Looman stated within the July 30 press launch.

This isn’t the primary time Halper and his nursing services have come below hearth for expertise administration practices. 

Beforehand, in 2022, the U.S. Lawyer’s workplace within the Western District of Pennsylvania indicted two nursing services and 5 folks “on fees of conspiracy to defraud america.” Complete Healthcare Administration Companies was one of many services named and the group of 5 people included Sam Halper. 

The courts charged Halper, alongside together with his former director of nursing, Eva Hamilton, with “with falsifying staffing sheets supplied to the state Division of Well being to create the looks that the services had been in compliance with Medicare and Medicaid necessities.” The 2 had been additionally charged with “falsifying, concealing or protecting up by trick, scheme or machine materials” data associated to administering or paying for healthcare advantages.

Halper was acquitted of the DOJ fees in December 2023, in response to a media launch posted on the location of Goodwin Procter LLP, which recognized itself as his authorized illustration. 

“The DOJ alleged that Mr. Halper was chargeable for thousands and thousands of {dollars} in losses, and he confronted years of incarceration if he had been convicted,” Goodwin attorneys wrote within the launch. “Following a hard-fought trial which started on November 14th and concluded on December 18th, the jury acquitted Mr. Halper on all fees.”

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