In 2020, a class action lawsuit was filed against Select Rehabilitation, a provider of physical therapy and occupational therapy services, alleging that the company violated the Fair Labor Standards Act (FLSA) by failing to pay overtime wages to its employees. The lawsuit alleges that Select Rehabilitation required its employees to work more than 40 hours per week without paying them overtime compensation.
Allegations
The plaintiffs in the lawsuit allege that Select Rehabilitation engaged in a number of practices to avoid paying overtime wages, including:
- Requiring employees to work off the clock: The lawsuit alleges that Select Rehabilitation required its employees to work off the clock, meaning that they were not paid for all of the hours they worked.
- Discouraging employees from reporting overtime hours: The lawsuit alleges that Select Rehabilitation discouraged its employees from reporting overtime hours by telling them that they would be fired if they did so.
- Using a productivity requirement scheme: The lawsuit alleges that Select Rehabilitation used a productivity requirement scheme to avoid paying overtime wages. Under this scheme, employees were required to treat a certain number of patients per hour in order to receive overtime pay. However, the lawsuit alleges that this requirement was impossible to meet, and that as a result, employees were not paid overtime wages even though they worked more than 40 hours per week.
Impact
The Select Rehabilitation lawsuit has had a significant impact on the company. The company has been ordered to pay millions of dollars in damages to its employees, and it has also been forced to change its overtime pay practices.
Conclusion
The Select Rehabilitation lawsuit is a reminder of the importance of complying with the FLSA. Employers must make sure that they are paying their employees all of the wages they are entitled to, including overtime wages.