Prestige Home Care Denied Pay for Travel Time to Vulnerable Workers
Federal court finds home healthcare company willfully violated wage laws by refusing to compensate Home Health Aides for travel between client homes, short breaks, and overtime, systematically underpaying essential caregivers serving vulnerable seniors and disabled patients.
Prestige Home Care refused to pay Home Health Aides for time spent traveling between clients’ homes, failed to compensate breaks under 20 minutes, and manipulated overtime calculations using an illegal 80-hour biweekly system instead of the required 40-hour weekly standard. The federal court found these violations willful, meaning Prestige knew or recklessly disregarded the law despite being warned in a prior 2017 Department of Labor investigation. Home Health Aides, among the lowest-paid essential workers, lost wages for years while providing critical in-home care to vulnerable seniors and disabled patients.
Essential healthcare workers deserve every dollar they earn. This case shows how corporations exploit legal complexity to steal wages from those who can least afford it.
The Allegations: A Breakdown
| 01 | Prestige refused to compensate Home Health Aides for time spent traveling between clients’ homes during their workday, even though this travel was necessary and integral to providing in-home healthcare services. | high |
| 02 | The company failed to pay workers for rest breaks of 20 minutes or less, treating these short breaks as off-the-clock time despite federal regulations requiring compensation for breaks under 20 minutes. | high |
| 03 | Prestige calculated overtime pay based on an 80-hour biweekly period instead of the legally required 40-hour workweek, systematically denying workers proper overtime compensation when they exceeded 40 hours in a single week. | high |
| 04 | The company failed to maintain proper records of travel time, making it nearly impossible for employees to prove how many unpaid hours they had worked and violating federal recordkeeping requirements. | high |
| 05 | Prestige improperly compensated dual-service employees who performed different types of work at different pay rates, failing to use the legally required weighted average calculation for overtime pay. | medium |
| 06 | The District Court found all five categories of violations were willful, meaning Prestige either knew its conduct violated the FLSA or showed reckless disregard for whether it was breaking the law. | high |
| 07 | These violations continued even after a 2017 Department of Labor investigation that specifically warned Prestige about wage and hour compliance requirements and provided the company president with official guidance documents. | high |
| 08 | The court rejected Prestige’s expert witness who attempted to justify the pay scheme by incorrectly claiming that travel time was non-work that should be paid at minimum wage or not paid at all. | medium |
| 01 | The Department of Labor investigated Prestige in 2017 for paying an employee straight time for overtime hours, but this initial investigation failed to uncover the broader pattern of travel-time and break-time violations. | high |
| 02 | After the 2017 conciliation, the Department sent Prestige official guides advising on compensation rules, yet the company continued its illegal pay practices for years until a second, larger investigation began in 2018. | high |
| 03 | The dispersed nature of home healthcare work, with employees scattered across multiple private residences rather than a central workplace, made it difficult for regulators to detect the violations through standard audits. | medium |
| 04 | Federal wage enforcement remains reactive rather than proactive, typically initiating thorough investigations only after receiving formal complaints or tips, allowing violations to continue for extended periods. | high |
| 05 | The complexity of determining compensable time in home healthcare, combined with limited Department of Labor investigatory resources, enabled Prestige to maintain its illegal practices across a large workforce for years. | medium |
| 06 | Even after being placed on notice in 2017 that it had violated overtime rules, Prestige faced no monitoring or follow-up enforcement that would have caught the ongoing travel-time violations. | high |
| 01 | Prestige’s business model relied on Home Health Aides traveling between multiple client homes each day, yet the company treated this essential travel as unpaid time, transferring substantial labor costs directly onto workers. | high |
| 02 | By refusing to pay for travel between clients, Prestige saved money on every shift where workers saw multiple patients, with these unpaid increments accumulating to significant cost savings across dozens or hundreds of employees over years. | high |
| 03 | The company’s 80-hour biweekly overtime calculation meant that an employee working 50 hours one week and 30 hours the next would receive no overtime pay, even though they worked 10 hours over the legal weekly limit. | high |
| 04 | Prestige systematically excluded short breaks from compensable time, shaving a few minutes per shift that accumulated across the workforce into substantial wage savings for the company. | medium |
| 05 | The court’s finding of willfulness suggests Prestige’s leadership prioritized short-term profit gains from these practices over potential legal liability, effectively calculating that the financial benefits outweighed the risk of being caught. | high |
| 06 | Even facing double damages through liquidated damages provisions, companies like Prestige can still profit if they avoid detection long enough, treating occasional penalties as a cost of doing business rather than a true deterrent. | high |
| 07 | Labor costs constitute one of the largest expenses in service-oriented businesses, creating strong financial incentives to classify as much time as possible as unpaid, especially when workers lack bargaining power. | medium |
| 01 | Home Health Aides could not provide their essential services of caring for clients in their homes without traveling between those homes, yet Prestige treated this indispensable work as if it did not exist. | high |
| 02 | Workers who saw three clients per day with 20 minutes of travel between each lost nearly an hour of daily pay, and this pattern repeated across their workweeks without compensation. | high |
| 03 | The dispersed nature of home healthcare work meant employees rarely interacted with each other, making it harder for them to collectively recognize pay violations or organize to demand proper compensation. | medium |
| 04 | Prestige’s failure to maintain travel-time records meant workers had no documentation to prove how many unpaid hours they had worked, creating a nearly insurmountable barrier to claiming owed wages. | high |
| 05 | Home Health Aides work in one of the lowest-paid sectors of healthcare, making every lost dollar of wages significantly more impactful on their ability to meet basic living expenses. | high |
| 06 | The court noted that work suffered or permitted counts as work time under federal law, meaning Prestige could not escape liability by claiming workers voluntarily chose to structure their days with travel. | medium |
| 07 | Workers faced a choice between accepting suboptimal jobs that failed to pay for every minute worked or having no job at all, particularly in a labor market that systematically undervalues home healthcare services. | high |
| 08 | High turnover and low unionization rates in home healthcare reduced the likelihood of collective action or organized employee complaints that might have caught regulatory attention sooner. | medium |
| 01 | Underpaying Home Health Aides creates physical and emotional burnout among caregivers, directly threatening the quality of care received by vulnerable seniors, disabled individuals, and patients recovering from illness. | high |
| 02 | Systematic wage theft discourages talented caregivers from joining or remaining in the home healthcare field, depleting the workforce serving an aging population with growing care needs. | high |
| 03 | Overworked and underpaid caregivers face higher risks of stress-related errors and reduced morale, factors that can directly undermine patient well-being and safety. | medium |
| 04 | High turnover caused by inadequate compensation disrupts continuity of care, forcing vulnerable patients to repeatedly adjust to new caregivers and potentially compromising treatment outcomes. | medium |
| 05 | Home Health Aides provide essential services that enable patients to maintain quality of life in familiar, supportive home settings rather than institutional facilities, making fair compensation a public health imperative. | medium |
| 01 | When home healthcare companies underpay workers, those employees have less money to spend in local economies, perpetuating wealth disparity and reducing community purchasing power. | medium |
| 02 | Lower wages for Home Health Aides translate to diminished tax revenue that communities depend on for public services, creating a ripple effect beyond the workers themselves. | medium |
| 03 | Families and communities with older or disabled residents requiring in-home care suffer when compromised wages lead to high caregiver turnover and inconsistent quality of care. | medium |
| 04 | Workers stretched thin financially often take on second or third jobs, further eroding their capacity to provide quality care and contributing to stress and mental health challenges. | medium |
| 05 | The economic fallout from wage theft extends to local businesses and services that lose customers as workers have less disposable income to spend in their communities. | low |
| 01 | Prestige received official Department of Labor guidance documents in 2017 explaining wage and hour requirements, yet continued its illegal practices with apparent knowledge that it was violating federal law. | high |
| 02 | The company attempted to introduce an expert witness whose testimony was based on multiple errors of law, including the false claim that travel time should be paid at minimum wage or not at all. | high |
| 03 | Prestige argued that travel was not closely related to the productive work of feeding, bathing, and dressing clients, ignoring that Home Health Aides cannot provide in-home care without traveling to homes. | medium |
| 04 | The company’s expert excluded from his analysis all shifts where travel time was 10 minutes or less, incorrectly assuming the court would treat this as legally insignificant even though no such exemption exists. | medium |
| 05 | Despite maintaining that it had reasonable grounds for its pay practices, Prestige could not explain the discrepancy between its president’s testimony about dual-service pay calculations and what company records actually showed. | medium |
| 06 | The court found that Prestige’s violations were willful partly because the company continued illegal practices even after receiving specific notice of FLSA requirements in the prior investigation. | high |
| 07 | By failing to keep proper records of travel time, Prestige created an evidentiary gap that made it extremely difficult for employees to prove exactly how much they were owed, shifting the burden onto already-exploited workers. | high |
| 01 | Prestige attempted to frame the travel-time issue as a good-faith disagreement over legal interpretation, claiming it believed travel was not compensable work despite clear regulatory guidance to the contrary. | medium |
| 02 | The company argued that employees voluntarily chose to serve multiple clients in different locations and could have avoided travel by scheduling visits in the same building, attempting to shift responsibility onto workers. | medium |
| 03 | Prestige contended there was a genuine factual dispute over whether Home Health Aides were required to travel, even though the court found that work suffered or permitted is compensable regardless of whether it is technically required. | medium |
| 04 | The company invoked complexity and claimed that compensating necessary travel would be unworkable and require problematic estimation, despite the FLSA explicitly providing for reasonable approximation when employers fail to keep proper records. | medium |
| 05 | Prestige likely markets itself publicly as a compassionate provider for vulnerable seniors and disabled individuals, creating a stark contrast with internal cost-cutting strategies that exploit the workers providing that care. | medium |
| 01 | Home Health Aides rank among the lowest-paid essential workers in American healthcare, making the systematic theft of wages through unpaid travel time and breaks particularly devastating to their economic security. | high |
| 02 | Each individual worker might lose seemingly small increments of pay, but when those increments are multiplied across an entire workforce over years, they represent a massive transfer of wealth from workers to the company. | high |
| 03 | Workers living paycheck-to-paycheck bear the immediate burden of wage theft, while corporate executives and shareholders benefit from artificially suppressed labor costs that boost profit margins. | high |
| 04 | The willful nature of the violations means Prestige’s leadership made a calculated decision to continue practices that enriched the company at the direct expense of its most vulnerable employees. | high |
| 05 | Even with court-ordered back pay and liquidated damages, years of lost wages cannot be fully recovered in terms of missed bill payments, foregone opportunities, and accumulated financial stress on workers and their families. | medium |
| 06 | The systemic underpayment of home healthcare workers contributes to broader wealth inequality by denying fair compensation to a workforce that is disproportionately composed of women and people of color. | medium |
| 01 | Prestige’s case wound through District Court proceedings including expert witness disputes, sanctions motions, and summary judgment arguments before reaching the Circuit Court on appeal, delaying final resolution for years. | medium |
| 02 | The company attempted to exclude damaging evidence and fought the Department of Labor’s wage calculations at every stage, using legal complexity to extend litigation and postpone accountability. | medium |
| 03 | By the time courts resolve wage-and-hour cases like this one, many affected employees have moved on to other jobs or given up hope of recovering owed wages, reducing the practical impact of eventual judgments. | medium |
| 04 | Prestige filed an appeal challenging seven separate aspects of the District Court’s ruling, requiring additional months or years of litigation before workers could potentially see compensation. | medium |
| 05 | The Circuit Court had to address whether the District Court properly excluded Prestige’s expert, rejected sanctions against the Department of Labor, and correctly found willfulness, each adding layers of delay to final resolution. | low |
| 01 | The Circuit Court affirmed that Home Health Aides must be compensated for travel time between client homes because this travel is integral and indispensable to providing in-home healthcare services. | high |
| 02 | Prestige’s willful violations triggered a three-year liability period instead of two years, plus liquidated damages equal to the full amount of back wages owed, potentially doubling the company’s financial penalty. | high |
| 03 | The ruling establishes that even when employees have time to go off duty between clients, they must still be compensated for the travel time necessary to move between job sites. | high |
| 04 | Employers cannot escape liability by failing to keep proper records of compensable time; instead, courts will allow employees to present reasonable estimates and shift the burden to employers to disprove those estimates. | high |
| 05 | The decision reinforces that breaks under 20 minutes must be counted as hours worked, and that overtime must be calculated on a weekly basis unless specific statutory exemptions apply. | medium |
| 06 | This case demonstrates that prior regulatory warnings and conciliation agreements can serve as evidence of willfulness when a company continues the same types of violations. | medium |
| 07 | Without structural reforms including steeper penalties, robust whistleblower protections, and adequately funded enforcement agencies, wage-and-hour violations will remain a persistent feature of low-wage labor markets. | high |
| 08 | The outcome sends a signal to other home healthcare providers that denying compensation for travel time and short breaks can result in substantial financial liability, though whether it creates meaningful deterrence remains uncertain. | medium |
Timeline of Events
Direct Quotes from the Legal Record
“These are employees who could not provide their services of caring for clients in clients’ homes without at least some travel.”
💡 The court rejected Prestige’s claim that travel was separate from work, establishing that home healthcare inherently requires compensable travel.
“While the Department did not tell Prestige whether travel was compensable, it did inform Prestige that any time where its HHAs were providing services or were required to be available to provide services was time worked.”
💡 Prestige received explicit guidance about compensable time in 2017 but continued refusing to pay for travel, demonstrating willfulness.
“A violation is willful if the employer either knew or showed reckless disregard for the matter of whether its conduct was prohibited by the statute.”
💡 This legal standard allowed the court to extend the statute of limitations and award enhanced damages against Prestige.
“The PPA does not cover any time within that period, even if an employee does not engage in work throughout all of that period and has a rest period or a lunch period instead.”
💡 The Portal-to-Portal Act exemption does not apply to travel during the workday, only before and after, defeating Prestige’s primary legal defense.
“An HHA must always spend time traveling on a workday if he or she has multiple clients in different locations. Such travel is therefore integral and indispensable, and thus a compensable principal activity.”
💡 The court applied Supreme Court precedent to establish that necessary inter-client travel must be paid as part of the job.
“Rest periods of short duration, running from 5 minutes to about 20 minutes must be counted as hours worked.”
💡 Federal regulations clearly require payment for short breaks, yet Prestige systematically treated them as off-the-clock time.
“Prestige’s duty is simply to make a record so that the employer and employee have the most probative facts concerning the nature and amount of work performed.”
💡 By failing to track travel time, Prestige violated its legal obligation and made it nearly impossible for workers to prove hours worked.
“That Prestige’s notice came in the context of violating the FLSA’s overtime rules is also relevant.”
💡 The 2017 investigation provided clear notice that Prestige had already violated wage laws, making continued violations even more culpable.
“Because Prestige’s FLSA violations were willful, it lacked good faith; therefore, the District Court did not abuse its discretion in awarding backpay and liquidated damages.”
💡 Willful violators cannot claim they acted in good faith to reduce damages, ensuring Prestige faces full financial consequences.
“Work that is suffered or permitted is work time, no matter the employee’s reason for taking on more work. There is no genuine dispute that Prestige permits its employees to structure their workdays in a manner that necessitates travel.”
💡 Prestige cannot escape liability by claiming workers chose to travel; permitting the travel makes it compensable under federal law.
“Crandall’s testimony would erroneously tell the jury that the HHAs were entitled to a rate of pay that the law does not permit; that their overtime pay was based on that same unlawful rate of pay; and that the period for which they could be compensated was less than what the law required.”
💡 The court excluded Prestige’s expert for making fundamental errors about what federal law requires, eliminating a key defense.
“An employee has carried out his burden if he proves that he has in fact performed work for which he was improperly compensated and if he produces sufficient evidence to show the amount and extent of that work as a matter of just and reasonable inference.”
💡 When employers fail to keep proper records, workers can use reasonable estimates to prove damages, shifting the burden back to the employer.
“The Supreme Court has never contended that a damages calculation under Mount Clemens must be perfectly accurate, because, inevitably, these cases pit employees who might have access to work records against companies who should but do not.”
💡 Courts recognize that precise calculations are impossible when employers destroy or fail to create records, so reasonable approximations suffice.
“We exercise plenary review over the District Court’s grant of summary judgment. That means we review anew the District Court’s summary judgment decisions and apply the same standards that it was required to apply.”
💡 The Circuit Court independently reviewed all evidence and legal conclusions, providing a thorough second look that still found against Prestige.
“For all these reasons, we will affirm the District Court’s judgment.”
💡 After examining seven separate challenges raised by Prestige, the appellate court upheld every aspect of the ruling against the company.
Frequently Asked Questions
related:
https://www.dol.gov/newsroom/releases/whd/whd20230602-0
https://www.dol.gov/agencies/whd/fact-sheets/31-flsa-nursing-care
https://www.dol.gov/agencies/whd/fact-sheets/53-healthcare-hours-worked
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