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CAUTIONARY TALE EPISODE 111
SIMPLE ADDITION
Rehab Company Hit forMultiple Location Overtime
The federal Department of Labor has flunkedFirst Physical & Functional Rehab for failing to count the employees’ cumulative hours at three work locations, thus shorting them on overtime pay.
First Physical settled with the DOL for $171,897 back wages and $18,810 civil penalties for willful violations.
An employer may not separately treat a worker’s labors at different locations to avoid paying overtime even where, as here, each venue is separately incorporated. First Physical’s website shows each of its three offices as a joint enterprise.
Honolulu Wage and Hour Division Acting District Director Patrick Candoleta said: “Employers must abide by federal laws and ensure that workers are fully compensated for all hours worked. We will continue to hold employers accountable to help ensure that compliance is a priority in every workplace. We will also offer compliance assistance to help employers who seek it avoid violations of overtime requirements and other wage and hour rules.”
TAKE-AWAYS:
Management must combine all of an employee’s daily and weekly hours worked at all locations and pay any resulting overtime.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
Helena Kobrin
July 3, 2026
If you are an employer facing possible litigation, or have an employee issue on which you need immediate guidance, call us to set up a consultation, or submit your message.
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