DOL Orders Homecare Provider to Pay $135K in Back Wages

MINNEAPOLIS, Minnesota—The Department of Labor (DOL) has recovered $135,000, representing $67,500 in back wages and an equal amount in liquidated damages, for 57 employees of Axis Home PCA Agency Inc. An investigation by the department’s wage and hour division found the Minneapolis employer violated the Fair Labor Standard Act’s overtime and recordkeeping provisions.  

A consent judgment and order entered by district court Judge John R. Tunheim on July 16, 2024, requires the agency and owner, Cubtan Nur, to make the back wage payments, maintain an electronic timekeeping systems and abide by the FLSA in the future.

The department filed a complaint on Aug. 15, 2022, after investigators found Axis typically paid their employees regular pay for all hours worked from May 16, 2019, to May 15, 2021, rather than paying employees one and half times their regular rates for over 40 hours in a workweek.  Employees of Axis provide in-home personal care services to children and adults.

“These caregivers provide their clients with critical in-home care to maintain their dignity and support their ongoing care needs. They deserve the wages they have rightfully earned for their hard work and dedication,” said Kristin Tout, wage and hour district director. “Employers are legally responsible for knowing and complying with federal wage laws.”

“The injunctive relief provided by this consent judgment – including requiring the payment of overtime whenever an employee works more than 40 hours, regardless of whether they are working for different clients or doing different tasks – will protect Axis’s employees,” said Christine Z. Heri, regional solicitor of labor. “The department will continue to allocate its resources to protect caregivers, who are disproportionally women of color and among the nation’s lowest paid workers.”  

In the fiscal year 2023, the wage and hour division recovered more than $31.8 million in back wages for workers in the healthcare industry nationwide and $528,886 for workers in Minnesota. The wage and hour division offers resources for healthcare workers on its website.  

Learn more about the wage and hour division, using this search tool if you think you may be owed back wages collected by the division or 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).