Payroll Mistakes:
Timekeeping System Can Cost You Millions
Health Care Industry Under the Radar
The Wage and Hour Division's St. Louis District Office conducted investigations to Health Care locations. Division finds $1,738,133 in back wages due 4,007 employees.
The Wage and Hour Division recently conducted investigations to various SSM
Health Care locations and found that the medical corporation violated the FLSA's overtime provisions by failing to pay its nursing staff time and one-half their regular rates for hours worked beyond 40 in a workweek. The employees were not paid when they were required to work during some meal periods.
The company's timekeeping system automatically deducted time for meal periods whether the employees were fully relieved of their duties or not. The division found $1,738,133 in back wages due 4,007 employees. Among the SSM Health Care location the Wage and Hour Division investigated are: St. Joseph Hospital West, St. Mary's Health Center, Cardinal Glennon Children's Medical Center and SSM Rehab Executive Offices, all in St. Louis; St. Joseph Health Center in St. Charles, Mo.; DePaul Health Center in Bridgeton, Mo.; and (now closed) St. Joseph Hospital of Kirkwood, Mo.
- The FLSA requires that employers pay at least the federal minimum wage of $7.25 per hour.
- Overtime must be paid at one and one-half times employees regular rates of pay for hours worked beyond 40 per week.
- Employers must maintain accurate time and payroll records.
- The FLSA also requires that an employee must be completely relieved from duty for the purpose of eating regular meals. If the employee is not relieved, he/she is required to perform any duties, whether active or inactive, while eating, the employee should be compensated for time spent working.
When handling your payroll, Odyssey OneSource always provides the most accurate and reliable information to avoid payroll mistakes that could affect your bottom line. If you have any questions about our full-service solution or want to relieve the burden of regulatory compliance, contact us at (888) 680-8800or
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