A federal lawsuit has been filed against a nursing home in Jackson County, Michigan, alleging violations of the Fair Labor Standards Act (FLSA) related to pay practices for hourly workers.
The case, filed in the US District Court for the Eastern District of Michigan, seeks class-action status on behalf of current and former hourly employees. The plaintiff claims that the facility required staff to complete mandatory in-service training modules outside of their scheduled work hours without compensation. Each module reportedly took about an hour to complete.
According to the complaint, hourly employees who failed to complete the unpaid tasks could face disciplinary measures, including being prevented from clocking into the timekeeping system. The lawsuit also challenges the facility’s timekeeping and rounding practices, alleging that shifts were rounded to the nearest quarter-hour and that staff were instructed to clock in several minutes before the start of their scheduled shifts to review work assignments.
The suit argues that this rounding system resulted in employees losing wages for both regular and overtime hours, in violation of federal labor laws. It further claims that the employer either knew or should have known that its pay practices failed to meet FLSA requirements.
In its response, the nursing home has denied the allegations of wrongdoing. The facility stated that employees had an established procedure to report any unpaid work time and argued that the plaintiff did not use that process. The defense also contends that the claims do not demonstrate an intentional violation of labor law.
Compliance Perspective
Issue
The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for most private and public employers. Unless exempt, employees must be paid at least the federal minimum wage and at least one and one-half times their regular rate of pay for hours worked beyond 40 in a work week. Hours worked generally include all time an employee is required to be on duty, on the employer’s premises, or at a prescribed workplace. Employers are also required to maintain accurate and up-to-date records for each non-exempt employee, including identifying information, hours worked, and wages earned. Maintaining complete and accurate records is essential for compliance with the law and for preventing potential wage and hour disputes.
Discussion Points
- Review your facility’s policies and procedures related to wages, overtime eligibility, and recordkeeping to ensure they align with federal and state requirements. Policies should clearly define how work time is recorded, how overtime is calculated, and what constitutes compensable work. When conducting these reviews, many organizations find value in working with an external consultant to evaluate their current processes, identify areas for improvement, and ensure that written procedures reflect both regulatory expectations and best practices.
- Provide comprehensive education for staff responsible for payroll, scheduling, and timekeeping, covering accurate time tracking, proper reporting of all hours worked, and awareness of what qualifies as compensable under the FLSA, with training offered to both managers and employees to reinforce accountability. Med-Net Academy offers the course Employee Recordkeeping Requirements and Education, which focuses on the documentation that must be maintained in employee files—including in-service training records, licensure verification, and competency documentation—and emphasizes how proper recordkeeping supports compliance, demonstrates staff competency, and ensures that required documentation is complete, organized, and readily available for review.
- Conduct regular audits to verify that wage and hour practices are compliant and that timekeeping systems accurately capture all compensable work hours. Routine reviews should include evaluating rounding practices, time clock policies, and overtime calculations. Some facilities choose to work with a consultant to perform focused compliance reviews or mock audits, providing an objective assessment of payroll practices and documentation.
*This news alert has been prepared by Med-Net Concepts, Inc. for informational purposes only and is not intended to provide legal advice.*