Exploitation and Wage Theft of Healthcare Workers

Wage theft of healthcare workers.

Wage theft is all too common an occurrence for healthcare workers. Although this type of exploitation can happen in any industry, it is a particular problem for nurses, home health aides, medical assistants, and technicians. Unfortunately, many healthcare workers fail to report this wrongdoing for fear of retaliation. If you’ve been subjected to healthcare wage theft, it’s essential to understand that you have crucial legal rights. A skillful employment law attorney can explain your available options and help ensure you recover the wages you are rightfully entitled to.

Key Takeaways

  • Healthcare wage theft can take many forms, including failure to pay overtime, paying below the minimum wage, and requiring work off-the-clock.
  • Wage theft in the healthcare industry can occur due to systemic issues, complex scheduling, and employees’ unfamiliarity with the labor law.
  • Employees who experienced healthcare wage theft may be entitled to recover their rightful wages by filing a claim with the Ohio Department of Commerce, the U.S. Department of Labor, or by filing a lawsuit.

What is Healthcare Wage Theft?

Wage theft occurs when an employer fails to pay a worker the compensation they are entitled to receive under the law for all hours worked. In the healthcare industry, wage theft can take many forms due to the nature of the employment and pay structure.

Some examples of healthcare wage theft and exploitation include the following:

  • Failing to pay overtime: In a healthcare setting, an employer may wrongfully treat mandatory meetings or chart updates as “off-the-clock” work. They may also clock workers out after 12 hours, even if they have been assigned to stay late.
  • Illegally rounding time: Time clock rounding is impermissible if it would result in an employee not being compensated for all hours worked.
  • Paying below the legal minimum wage: Ohio’s minimum wage is $10.70 per hour in 2025, set to increase to $11 in 2026. Since the statewide minimum wage is higher than the federal minimum wage of $7.25, employers must comply with the state’s minimum wage requirements.
  • Requiring uncompensated work off-the-clock: Employers are not permitted to require uncompensated work off-the-clock. Employees must be paid for all hours worked, including overtime for any hours worked over 40 in a week.
  • Deducting breaks that are not taken: Some employers automatically deduct meal breaks for healthcare workers, even if the breaks are not taken or they are interrupted.
  • Wrongfully deducting expenses from paychecks: Certain deductions are permissible with written authorization, such as taxes, retirement contributions, and health insurance costs. However, an employee’s pay cannot be reduced in connection with unlawful deductions, such as property damage or uniform costs that would cause the employee’s hourly wage to fall below minimum wage.

Healthcare workers can also be subjected to wage theft through misclassification. This occurs when an employer wrongfully classifies an employee as an independent contractor, denying them the benefits and protections that they would otherwise have. Importantly, to determine whether an employee has been misclassified, a court would look beyond the terms of the contract and consider the overall circumstances of the employment relationship.

Why Does Healthcare Wage Theft Occur?

Although wage theft is a problem across various sectors, there are unique factors in the healthcare industry that can contribute to the prevalence of this issue. For instance, systemic issues can lead to employers prioritizing profit over the welfare of employees. Due to varied shifts and complex scheduling, tracking hours can be more difficult. This can create opportunities for an employer to manipulate time records, miscalculate hours, and either intentionally or inadvertently underpay employees.

High turnover rates can also contribute to healthcare wage theft. Unscrupulous employers may exploit new hires who are unfamiliar with the labor law. While many healthcare workers may not understand their legal rights, they may consider unpaid work to simply be part of their job duties. Often, workers fear they will be retaliated against if they speak out, or it will appear that they are not dedicated to the position if they question their paycheck.

What Legal Remedies are Available for Healthcare Wage Theft?

Healthcare wage theft can lead to burnout, financial instability, missed career opportunities, and both mental and physical health issues. If your paycheck does not accurately reflect the hours you worked, it’s essential to understand the legal remedies that may be available to you. There are a few courses of action that you may be able to take if you’ve experienced healthcare wage theft, depending on the specific facts of your case. First, you should address the issue with your employer or the Human Resources department. If attempts at a resolution fail, you can file a wage theft complaint with the Ohio Department of Commerce or, in some cases, with the U.S. Department of Labor. These agencies will investigate your complaint to determine whether wage theft occurred, and hold your employer accountable.

You may also be eligible to file a lawsuit in court to recover all the wages and overtime you should have been compensated, as well as other damages. It’s vital that you carefully document your case in order to establish your employer’s wrongdoing. Keep records of all communications that you had with your employer regarding your attempt to resolve the pay discrepancy. Be sure to retain copies of all paystubs, employment agreements, records of hours worked, and work schedules. These documents can serve as crucial evidence to demonstrate the occurrence of healthcare wage theft.

Contact an Experienced Ohio Employment Law Attorney

If you’ve experienced healthcare wage theft, it’s crucial to have a knowledgeable employment law attorney who can protect your rights. Located in Westlake, Lalak LLC handles a wide range of employment matters throughout Ohio, including those concerning wage violations in the healthcare industry. Contact Lalak LLC online today or call 440-209-2379 to schedule a free, confidential, no-obligation consultation with an experienced employment attorney and learn how we can assist you with the compensation you are rightfully entitled.