Garden Grove Healthcare Company Ordered To Pay $690,000 In Back Wages

Garden Grove, which was previously ordered to pay over $1 million to employees as part of a federal payroll theft investigation, has again been ordered to pay employees tens of thousands of dollars.

A judge ordered Neldi Nursing Home to pay $690,696 to 108 adult caregivers after a U.S. Department of Labor investigation found it was deliberately withholding the wages of its workers.

The order, filed in the U.S. District Court for the Central District of California, permanently bars the care provider from future labor rights violations at its 12 offices in Orange and Riverside Counties.

The investigation found that Neldy's repeatedly paid affected workers to hide the hours they worked together. Investigators also found that the company deducted lunch breaks from workers' pay and did not keep records of time and wages required by law.

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“The court case and our investigation sends a clear message to unscrupulous employers in the care sector that we will hold them accountable for their attempts to exploit workers and deprive them of their hard-earned wages,” the District Director of Wages and Hours said. department. , Min Pak Chung in San Diego. “It is truly appalling that Neldi Nursing Home operators continue to so blatantly disregard the rights of their workers despite previous violations.

A 2013–2016 investigation found that Neldi owed 58 workers $1,069,730 in back wages and fines after violating the Fair Labor Standards Act, minimum wage and overtime laws.

On Tuesday, a spokesman for Neldi declined to comment on both cases.

The Department of Labor said in a statement that such wage violations are "common" in the healthcare industry.

The agency said it reimbursed $13.8 million in back payrolls for more than 17,000 U.S. healthcare workers in 2021.

The Department of Labor expects the industry to grow by 16% between 2020 and 2030—faster than the average for all occupations—and create about 2.6 million new jobs.

To learn more about US payroll laws, call 866-4US-WAGE (487-9243).

Employees who suspect wage theft may file a complaint with the California Commissioner of Labor. The government agency also maintains an information website that explains workers' rights in English and Spanish.