Third Circuit Affirms Home Health Care Aides Must Be Paid for Travel Between Clients
Key Takeaways:
-
Companies that employ nonexempt workers who travel between worksites in a single workday need to review their policies and procedures to ensure they are compliant with a recent decision from the Third Circuit Court of Appeals
-
As part of these policies and procedures, employers must provide their workers with clear instructions as to how to track their hours to make sure the company records are accurate, and the company pays its workers properly
Having to compensate employees for time spent not working can be counterintuitive, but under certain circumstances, it is an employer’s obligation.
Recently, the Third Circuit Court of Appeals affirmed a District Court ruling in Secretary United States Department of Labor v. Nursing Home Care Management Inc., that Home Health Care Aides traveling between clients’ homes must be compensated for “time spent in travel after an off-duty period, but only for time necessary to travel between job sites.” More specifically, if an employee has time between clients to do whatever the employee pleases, e.g., run personal errands, then not all the travel time between clients is compensable – only the actual time it takes to travel between client locations. The court rejected the employer’s arguments that travel time between clients is time spent not working and traveling is not closely related to their productive work (“feeding, bathing, providing medication, and dressing their clients”), among other arguments.
In reaching its decision, the Third Circuit combed through and analyzed Fair Labor Standards Act provisions, relevant case law, and various Department of Labor regulations, to determine the proper course of action.
In light of this decision, any business in the Third Circuit that employs workers traveling between worksites in one workday needs to review its policies and procedures with respect to how it tracks employee hours and compensates its employees. Further, companies need to be mindful that it is the employer’s obligation to maintain records to show that they paid their employees for all time worked (and now for impacted businesses in the Third Circuit, for all time spent necessarily traveling between job sites as well). Employers should provide written policies and clear guidance to their employees to accurately and honestly report their hours (and for all hours worked, plus all necessary travel time between clients’ homes, as relevant) to ensure they pay their employees properly.
Navigating the world of wage and hour statutes and regulations is not an easy task, and it can be quite overwhelming when one is trying to run a profitable business. It is especially daunting given that “willful” violations of wage and hour statutes can lead to liquidated damages (i.e., double damages) and other increased damages.
If you are confronted with questions about whether your company should be compensating employees for time spent not working (as the above case illustrates), we recommend you speak to experienced legal counsel. We also recommend consulting legal counsel in the event of a government investigation or audit into your company’s pay practices. The Department of Labor’s lawsuit against Nursing Home Care Management was borne from an investigation and, unfortunately, led to the District Court finding a willful violation and the Third Circuit affirming the award of liquidated damages.
Goldberg Segalla LLP stands ready to help guide businesses through the labyrinth of wage and hour statutes and regulations. We are especially well-versed in the health care industry.
For more information or immediate guidance, contact:
Or another member of the Employment and Labor practice group.