Health Provider underpaid employees

An audit of Able Health Care Services of Merrick 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. Nassau County lawmakers unanimously passed the Living Wage law in December of 2006, a law 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 Able Health Care 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.

"Auditors found that Able Health Care Services was in violation of the Living Wage Law and had underpaid their employees,” said Comptroller Weitzman.

According to the audit, the agency shortchanged its employees on compensated days off and also paid employees at a rate lower than the mandated wage rate when it made payment for compensated days off. Able agreed to pay what was owed to the 132 employees who had been underpaid a total of $18,000.

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 $10.50 with health benefits or $12.05 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.

Back in October 2008, the Comptroller’s office found seven agencies owed employees $138,000 for failing to fully comply with the law. (see Comptroller’s website for those reports http://www.nassaucountyny.gov/agencies/Comptroller/NewsRelease/2008/LivingWageLawCompliance.html)

"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.”

Able Health Care Services representatives said they will still be reviewing their analysis to determine the exact amount owed and will modify their policies and pay employees any wages to which they are entitled. Auditors will conduct a follow up audit to ensure that Able’s employees receive their back pay.

Weitzman: ‘Health care provider underpaid employees by $18,000.’