VIRGINIA BEACH, Va. — A Virginia Beach home health care agency had to pay more than $604,000 after a Department of Labor investigation found it had violated law by asking employees to sign documents waiving their rights to overtime pay.
According to a DOL press release, Progressive Services of Virginia LLC and co-owners Georgiana and Richard Smith owed $302,144 in back wages and an equal amount in liquidated damages for about 50 affected workers. They also had to pay $18,703 in civil money penalties for their violation of the Fair Labor Standards Act.
The company provides in-home intellectual and developmental disabilities services for children, adolescents, and adults in the Chesapeake, Virginia Beach, Norfolk and Portsmouth areas.
Georgiana Smith, the company's CEO, told 13News Now that she and her husband were guilty of not paying overtime, but she said they did not realize it was illegal. She says they were misinformed by an accountant and when they realized their mistake, they willfully and promptly paid everything they owed to current and former employees.
"The Department of Labor conducted an investigation which began Sept 13, 2022, and lasted until March 29, 2023, with full cooperation from myself and my husband and current employees," Smith said in an e-mail.
"We all provided all requested documentation such as payroll information, taxes, employee information, and set up employee interviews. We also connected the Department of Labor to the accountant, who provided anything that was requested."
Smith explained that when the business was first licensed, they worked with an accountant who told them they could tell job candidates that the company paid straight time, not overtime. "Each employee had the option to take the position or decline and sign documentation if they decided to take the position," she said.
"The Fair Labor Standards Act does not permit employers to deny overtime pay or to instruct workers to waive their overtime pay," said Wage and Hour Division District Director Roberto Melendez in the press release. "Employees should know their workplace rights and employers must understand and comply with the law."
Smith told 13News Now that she and her husband believe they should have educated themselves but stressed that the mistake was not intentional. She said Progressive Services of Virginia began making payments on May 8, 2023, and made their last payment on June 14, one day before the Department of Labor sent a press release to local news organizations in Hampton Roads.
"Progressive Services of Virgina LLC provides services to individuals with intellectual and developmental disabilities," she said. "Our goal in this situation was to correct our error and resume back to caring for our individuals."
The DOL encourages employees and employers to use their resources online to learn more about workers' rights and laws.
