Wage Theft Allegations Against Pittsburgh-area Residential Homes Operator

Thursday, 29 August 2024, 10:06

Operator of Pittsburgh-area residential homes is facing allegations of shortchanging employees $163K. The investigation disclosed that Passavant Memorial Homes improperly calculated overtime. Employees impacted included over 500 individuals, with significant financial implications for the operator. The Department of Labor has secured substantial back wages and damages.
CBS News
Wage Theft Allegations Against Pittsburgh-area Residential Homes Operator

Allegations and Investigation

The operator of 140 residential homes across western Pennsylvania is accused of shortchanging employees more than $163,000. The U.S. Department of Labor announced that an investigation by the Wage and Hour Division revealed that Passavant Memorial Homes failed to include non-discretionary bonuses when calculating overtime wage rates for over 500 employees.

Secured Back Wages

The Department of Labor has successfully secured more than $163,000 in back wages for the affected employees as well as an equal amount in damages. This incident raises serious concerns about wage practices within the residential home sector.

Implications for the Industry

  • Potential for increased scrutiny from labor regulators
  • Need for compliance with wage and hour laws
  • Wider implications for employee rights and protections

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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