The U.S. Department of Labor’s Wage and Hour Division has begun investigations into residential care and group homes in the Charlotte and Raleigh areas with a special strike force focusing on violations of federal minimum wage, overtime, recordkeeping and child labor law.  Group homes, including those providing adult resident care, family care, assisted housing and special care, employ more than 7,000 workers statewide. The investigations are projected to affect more than 1,700 workers in the Charlotte area and more than 400 workers in the Raleigh-Cary area.

“Our goal is to protect the low-wage and vulnerable workers in this industry who are often denied the pay legally guaranteed to them by law,” said Rick Blaylock, the Wage and Hour Division’s district director in Raleigh.  When violations are found, the Wage and Hour Division will require payment of back wages for up to two years and, in some cases, monetary penalties, liquidated damages and other remedies to promote industry-wide compliance with federal labor laws.

In cases where a middle-layer management company provides services to a residential care facility, investigators will focus on determining whether both companies may be held jointly liable for violations. With multi-establishment enterprises, investigators will be looking to enter into enterprise-wide agreements that affect all operations of the parent corporation. (click on link to read full story)