Historic $35.8M Wage Recovery Judgment in Pennsylvania for Healthcare Workers
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In recent news, the U.S. District Court of Pennsylvania Western District awarded $35.8 million in back wages and damages to 6,000 current and former healthcare workers.
The Case: U.S. Department of Labor vs. Samuel Halper and CHMS Group
The Court: U.S. District Court for the Western District of Pennsylvania
The Case No.: 2:18-cv-1608
The Allegations: U.S. Department of Labor vs. Samuel Halper and CHMS Group
The action was initiated following an extensive Department of Labor investigation that uncovered systemic FLSA violations at 15 western Pennsylvania nursing, rehabilitation, and assisted living facilities. The federal investigation revealed that the facilities that engaged in the alleged violations were under the management of Samuel Halper and his payroll office, CHMS Group. The Defendant allegedly failed to pay their employees for all hours worked (including during meal breaks) and did not correctly calculate overtime pay.
The Defendant: U.S. Department of Labor vs. Samuel Halper and CHMS Group
The defendants in the case, U.S. Department of Labor vs. Samuel Halper and CHMS Group, include the corporate entities of 15 healthcare facilities, their owner and CEO, Samuel Halper, and CHMS Group, the payroll administration firm. The court found that these entities willfully disregarded FLSA requirements by misclassifying workers, omitting crucial compensation elements from overtime calculations, and keeping inaccurate employment records.
The Case: U.S. Department of Labor vs. Samuel Halper and CHMS Group
The case concluded after a rigorous 13-day bench trial featuring 50 witnesses and over 600 exhibits. The legal proceedings began with a lawsuit filed by the Department of Labor in 2018 after the employers refused to rectify their violations administratively. The trial underscored the employers' deliberate non-compliance with labor laws, leading to substantial financial and operational penalties, including permanent injunctions against further violations.
A Pivotal Moment for Labor Rights Enforcement:
This case is pivotal for labor rights enforcement, particularly within the healthcare sector. It serves as a powerful reminder of employers' legal responsibilities towards their employees and the severe consequences of neglecting these duties. For workers in California and across the U.S., this ruling reinforces the protections afforded under the FLSA and demonstrates the government's commitment to ensuring fair wage practices. Additionally, it provides a crucial precedent for future cases.
If you have questions about filing a California wage and hour lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Knowledgeable employment law attorneys are ready to assist you in various law firm offices in Riverside, San Francisco, Sacramento, San Diego, Los Angeles, and Chicago.
