RI doctor commits wage and hour malpractice

Four related healthcare businesses, their physician owner, and their practice administrator violated the Fair Labor Standards Act (FLSA) in multiple ways, Judge Mary S. McElroy of the U.S. District Court for the District of Rhode Island recently ruled. Among other violations, they failed to pay employees for unauthorized work or provide premium rates for overtime hours, and their timekeeping policies unlawfully shaved workers’ pay.

Practice administrator personally liable

One of the first issues the court decided was whether North Providence Primary Care Associates’ practice administrator was liable for the violations in addition to the companies and the owner. Under the "economic reality" test, courts consider several factors to determine whether an individual is an "employer" under the FLSA. Although it’s relevant whether someone is a business owner, the issue isn’t dispositive. Courts also weigh the person’s degree of control over the organization’s financial affairs and compensation practices and her role in causing the business to compensate (or not compensate) employees in compliance with the law.

Noting North Providence’s practice administrator had the authority to hire, fire, and supervise employees and set their schedules, compensation rates, and methods of pay, the court held the facts were sufficient to establish she was an employer under the economic reality test. Indeed, she had personally denied the payment of premium pay to employees who had worked overtime.