JUST IN: US Dept. of Labor files complaint against North Central Health Care

North Central Health Care is accused of willfully, repeatedly violating the Fair Labor Standards Act by failing to pay employees overtime in its community treatment program, according to a May 14 federal complaint filed by the U.S. Department of Labor.

Federal officials say a Wage and Hour Division investigation found NCHC failed to keep accurate and complete records of overtime worked by case managers in the community treatment program and showed “reckless disregard” in their actions. Specifically, NCHC allegedly created a policy that required case managers to seek approval for overtime – but then refused to answer phone calls from case managers seeking that approval, court documents state.

In addition, NCHC “acted willfully when it ignored or failed to address…complaints about unreasonable workload, resulting in undocumented overtime as case managers struggled to meet productivity requirements,” the complaint states.

Now, the U.S. Dept. of Labor is seeking unpaid back wages to more than 70 employees – and the list could grow.

NCHS is based in Wausau but comprises a partnership between Marathon, Lincoln and Langlade Counties to offer a range of public health services including community treatment, mental health, youth crisis care and substance abuse treatment.

Investigators interviewed employees and examined pay records from June 17, 2021, through June 16, 2023, and found current and former case managers reported off-the-clock work, a heavy case load, and reluctance or refusal from management to approve the overtime necessary to complete their work, according to a news release issued Tuesday.

“These case managers continued to go above and beyond to service the needs of their clients, while their employer refused to hear their complaints and pay them the wages they rightfully earned for their hard work and dedication,” said Wage and Hour District Director Kristin Tout in Minneapolis. “Employers are legally responsible for knowing and complying with federal wage laws.”

In addition to back wages, the complaint seeks liquidated damages and an injunction against the employer from violating the Fair Labor Standards Act.

Wausau Pilot reached out to North Central Health Care Communications and Marketing Manager Jessica Meadows Tuesday for comment.

“We understand and appreciate the public’s interest in this matter,” Meadows said in an email, on NCHC’s behalf. “However, due to the pending legal proceedings, we are unable to provide comments regarding the specifics of the case. We will refrain from making any public statements that could potentially influence the ongoing litigation. NCHC has confidence in the legal system to handle this matter fairly and effectively.”

In fiscal year 2023, the U.S. Department of Labor’s Wage and Hour Division recovered more than $31.8 million in back wages for workers in the healthcare industry nationwide.

Learn more about the Wage and Hour Division, a search tool to use if you think you may be owed back wages collected by the division and how to file an online complaint. For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.