Two Northwest Indiana nursing homes reach agreement to resolve overtime violations

Sept. 13--The owner of two Northwest Indiana nursing homes has reached an agreement with the U.S. Department of Labor to resolve overtime violations, according to a news release from the agency.

Indianapolis-based Ide Management Group LLC has agreed to pay 594 workers at 23 skilled nursing and assisted living facilities in Iowa, Illinois, and Indiana$165,379 in back wages and damages.

In Northwest Indiana, IMG will pay 38 employees at Chesterton Manor in Chesterton$3,399 and 24 employees at Colonial Nursing & Rehab in Crown Point$2,416.

The Department of Labor found that IMG failed to include nondiscretionary bonuses and shift differentials in its overtime rate calculations, a violation of the Fair Labor Standards Act.

"It was a minor issue with our time clocks, and all errors have been corrected. Employees have been paid," said Donna Draper, vice president of human resources for IMG.

IMG has since implemented a new payroll service and software to ensure it correctly computes wages in the future.

"Failing to include shift differentials and bonuses -- such as those paid for attendance and retention -- when computing an employee's regular rate of pay is a common overtime violation," stated Karen Chaikin, regional administrator for the Department of Labor's Wage and Hour Division. "We encourage all employers to take advantage of the division's education and outreach efforts to help them understand their responsibilities and how to properly calculate overtime rates."

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