Weitzman: ‘Health care provider owed employees over $58,000 in wages for ’07, ’08 and over $9,000 of vacation pay.’

An audit of PHC Services, Ltd. of Hempstead for the year 2007 revealed that many employees were not given the proper number of paid days off per year and were not paid the proper amount per hour under the Nassau County Living Wage Law, Nassau County Comptroller Howard Weitzman said today.

"Auditors found that PHC Services, Ltd. was in violation of the Living Wage Law and did not inform their employees of their rights under the Law,” said Comptroller Weitzman.

According to the audit, PHC asserted that it did not pay the mandated 2007 rate of $11 an hour to 44 employees in 2007 resulting in an underpayment of $38,000. PHC also admitted to having underpaid 30 employees $20,042 from January through July 2008. Combined, PHC says it owes its employees $58,042. Auditors also found PHC did not provide its employees with the minimum number of vacation days under the Living Wage Law. According to PHC, 19 covered employees were due a total of $6,051 for 2007 and 17 employees who earned $3,518 in compensated time off through July 31, 2008 were also not paid.

PHC management agreed to provide retroactive payments to the affected employees and to comply with the Living Wage Law going forward. The Comptroller’s office will be conducting a compliance audit for the 2008 contract, including retroactive payments for 2007, to ensure all affected employees were properly compensated and the law is being followed.

Nassau County’s Living Wage law is aimed at ensuring that employees of Nassau County contractors are earning a decent hourly wage, receiving health benefits or child care benefits or benefits supplement, and paid days off. In addition to auditing PHC Services, the Comptroller’s Living Wage Unit is currently conducting a review of almost all the 35 home health care agencies that contract with the County.

The Living Wage Law, which went into effect in 2007, set hourly wages from $9.50 in 2007, gradually increasing to $12.50 in 2010. Currently, the wage is set at $11.50 with health benefits or $13.10 without benefits. At the time the audit was conducted, the Living Wage was $9.50 per hour and the benefits supplement rate was $1.50 per hour. In addition, the law provides for up to 12 days of paid time off to be provided to eligible employees.

“The County’s Living Wage Law is meant to provide employees of companies that contract with the County the ability earn a decent wage,” Weitzman said. “We started our Living Wage audits with personal home health care aide contracts because the aides are paid low wages, yet deliver a vital service.”

Limited Audit of PHC Services, Ltd. Compliance with the Nassau County Living Wage Law