A Lebanon-based home care company must pay more than $1 million in back wages and penalties to 193 employees after failing to pay workers the mandated minimum wage and overtime, according to the U.S. Department of Labor.
WiCare Home Care Agency LLC of Lebanon and its owner, Luis Hernandez, were ordered to pay $529,770 in unpaid wages and damages in the same amount. The U.S. District Court for the Middle District of Pennsylvania entered summary judgment on the matter on July 31, 2024, according to the department.
An investigation by the department’s Wage and Hour Division found that WiCare failed to pay required overtime rates for hours worked in excess of 40 hours per week. The division also found that the home care agency did not pay some employees for all hours worked and that some employees were paid less than the current federal minimum wage of $7.25 per hour.
“Workers in the long-term care industry support those who rely on them with services essential to their quality of life, and they deserve to be adequately compensated for their hard work and dedication,” Wage and Hour Commissioner Jessica Luhmann said in a department release Wednesday afternoon. “Wage violations are all too common in the health care industry, and we are determined to root out violators and hold them accountable for the financial harm they cause employees.”
Investigators also found that WiCare failed to keep accurate records of hours worked, as required by the Fair Labor Standards Act.
WiCare Home Care Agency LLC provides in-home care services, including companionship, personal care, housekeeping and assistance with daily living, to residents of Adams County, Berks County, Carbon County, Cumberland County, Dauphin County, Franklin County, Fulton County, Huntingdon County, Juniata County, Lancaster County, Lebanon County, Lehigh County, Northampton County, Perry County, Schuylkill County and York County.
“The Department of Labor will use all available tools, including litigation if necessary, to send a clear message to employers who willfully deny employees full payment for their hard-earned wages,” Labor Counsel Seema Nanda said. “Ignoring federal regulations that protect workers’ rights is a huge mistake that comes with a huge price.”
Hernandez is also the owner of American House, which received a notice from the Pennsylvania Department of Human Services in August denying the facility’s license renewal. The department told the Lebanon Daily News that the facility could appeal the notice and could remain open during the appeal process.
In a letter, the Department of Homeland Security told American House that the decision was due to “failure to comply with Department regulations, gross incompetence, negligence, and failure to submit an acceptable plan to correct the non-compliance issues.”
Hernandez told the Lebanon Daily News in August that he was in the process of appealing American House’s notice and was considering a proposal to sell American House to a new owner.
Matthew Toth is a reporter for the Lebanon Daily News. He can be reached at mtoth@ldnews.com or @DAMattToth on X.
