Rhode Island’s second-largest hospital and Care New England Health System will pay $1.9 million in back wages and damages to 853 healthcare workers.
These employees were forced to work through their breaks without proper compensation during the COVID-19 pandemic.
The settlement follows an investigation by the US Department of Labor’s Wage and Hour Division.
Officials found Kent County Memorial Hospital in Warwick had been deducting 30-minute breaks automatically, even when employees worked through them due to staffing demands.
Emergency room staff and other departments often worked beyond 40 hours weekly but were not compensated for those extra hours, violating labor laws.
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Key Findings From the Investigation
The Department of Labor identified several critical violations at the hospital:
- Unpaid Breaks: Health workers were not compensated for breaks they couldn’t take due to workload demands.
- Overtime Violations: Staff working over 40 hours a week were denied proper overtime pay.
- Recordkeeping Issues: The hospital’s timekeeping practices failed to comply with federal requirements.
Financial Penalties and Remedial Measures
The hospital agreed to the following penalties and resolutions:
- $1.9 Million in Payments: Affected workers will receive back wages and liquidated damages.
- $100,000 in Civil Penalties: The hospital was fined for willful violations of the Fair Labor Standards Act (FLSA).
- Updated Practices: Substantial changes were made to timekeeping policies to ensure compliance with federal labor laws.
Jessica Looman, Wage and Hour Division Administrator, emphasized the importance of this resolution:
“An administrative resolution like this allows affected workers to collect their hard-earned wages promptly.”
Broader Impact in the Healthcare Industry
The Wage and Hour Division’s focus on healthcare labor law violations highlights the sector’s challenges. In fiscal year 2024, the division conducted 2,376 investigations across healthcare, recovering over $37 million in unpaid wages for nearly 30,000 workers nationwide.
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Resources for Workers and Employers
The Department of Labor encourages workers and employers to access the following resources to stay informed:
- Wage Recovery Search Tool: Identify if you are owed back wages.
- Confidential Helpline: Call 866-4US-WAGE (487-9243) for assistance in over 200 languages.
- Timesheet App: Available for iOS and Android to track hours and pay accurately.
A Fairer Future for Healthcare Workers
This settlement underscores the importance of fair compensation, particularly for healthcare workers who sacrificed so much during the pandemic. The case also highlights the Department of Labor’s commitment to protecting employees and enforcing labor laws in critical industries.
