Prestige Healthcare doesn’t pay its home health aides employees.

Prestige Home Care Denied Pay for Travel Time to Vulnerable Workers
Corporate Misconduct Accountability Project

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.

CRITICAL SEVERITY
TL;DR

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.

3 years
Extended liability period due to willful violations
5
Separate willful FLSA violations found by court
2x
Liquidated damages owed on top of back wages
20 min
Maximum break length that must be paid under federal law

The Allegations: A Breakdown

⚠️
Core Allegations
What they did · 8 points
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
🔍
Regulatory Failures
How oversight fell short · 6 points
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
💰
Profit Over People
The financial motive · 7 points
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
👷
Worker Exploitation
Impact on Home Health Aides · 8 points
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
🏥
Public Health and Safety
Ripple effects on patient care · 5 points
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
🏘️
Community Impact
Broader economic harm · 5 points
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
⚖️
Corporate Accountability Failures
How they avoided consequences · 7 points
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
📢
The PR Machine
Deflection tactics · 5 points
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
📊
Wealth Disparity
Who pays the price · 6 points
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
⏱️
Exploiting Delay
Legal obstruction · 5 points
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
📝
The Bottom Line
What this means · 8 points
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

2017
Department of Labor investigates Prestige for paying an employee straight time for overtime hours
2017
Conciliation agreement reached; Department sends Prestige official wage-and-hour compliance guidance documents
2018
Department of Labor begins larger investigation into Prestige’s pay practices
June 2021
Department of Labor files lawsuit in U.S. District Court for Eastern District of Pennsylvania (Case No. 2:21-cv-2583)
Pre-trial
District Court excludes Prestige’s expert witness Robert Crandall and his report for legal errors
Pre-trial
District Court denies Prestige’s motion for sanctions against Department of Labor
2023
District Court grants summary judgment for Department of Labor on all claims, finding willful violations
2023
Prestige and Alexander Dorfman file appeal to Third Circuit Court of Appeals (Case No. 23-2284)
June 5, 2024
Oral arguments heard before Third Circuit panel (Judges Hardiman, Porter, and Ambro)
January 31, 2025
Third Circuit Court of Appeals affirms District Court judgment in full, upholding findings of willful FLSA violations

Direct Quotes from the Legal Record

QUOTE 1 Travel is inseparable from the job allegations
“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.

QUOTE 2 Notice of legal requirements ignored accountability
“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.

QUOTE 3 Definition of willful violation accountability
“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.

QUOTE 4 Continuous workday rule allegations
“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.

QUOTE 5 Travel is integral and indispensable allegations
“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.

QUOTE 6 Short breaks must be paid allegations
“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.

QUOTE 7 Employer recordkeeping duty accountability
“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.

QUOTE 8 Previous violation as evidence accountability
“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.

QUOTE 9 No good faith defense accountability
“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.

QUOTE 10 Work suffered or permitted allegations
“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.

QUOTE 11 Expert testimony rejected for legal errors accountability
“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.

QUOTE 12 Mount Clemens burden-shifting framework economic
“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.

QUOTE 13 Approximation is sufficient economic
“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.

QUOTE 14 Scope of appellate review conclusion
“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.

QUOTE 15 Circuit Court affirms in full conclusion
“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

What exactly did Prestige Home Care do wrong?
Prestige refused to pay Home Health Aides for time spent traveling between clients’ homes, failed to compensate breaks under 20 minutes, used an illegal 80-hour biweekly system instead of calculating overtime weekly, and failed to keep proper records of travel time. The court found all of these violations were willful, meaning the company knew or recklessly ignored that it was breaking federal wage laws.
Why is travel time between clients considered work?
Home Health Aides provide care in clients’ homes, not at a central facility. The court found that travel between client homes is integral and indispensable to the job because workers cannot provide in-home healthcare without traveling to those homes. This makes the travel part of the principal work activity that must be paid under federal law.
What does willful violation mean and why does it matter?
A willful violation means the employer either knew its conduct violated the law or showed reckless disregard for whether it was legal. This matters because willful violations extend the statute of limitations from two years to three years and make it impossible for the employer to avoid liquidated damages by claiming good faith.
How much could Prestige owe in damages?
The company owes back wages for all unpaid travel time, short breaks, and improper overtime calculations over a three-year period. On top of that, the court can award liquidated damages equal to the full amount of back wages, potentially doubling the total. The exact dollar amount depends on how many workers were affected and how many unpaid hours they worked.
Why didn’t the 2017 investigation stop these violations?
The 2017 Department of Labor investigation focused narrowly on one employee being paid straight time for overtime hours. While the Department sent Prestige official guidance documents about wage and hour requirements, the investigation did not uncover the broader pattern of travel-time and break-time violations. It was only when a larger investigation began in 2018 that these systematic problems came to light.
What happened to Prestige’s expert witness?
The District Court excluded Prestige’s expert, Robert Crandall, because his testimony contained fundamental errors of law. He incorrectly claimed travel was non-work that should be paid at minimum wage or not at all, wrongly assumed overtime could be weighted at different rates without establishing separate pay scales, and improperly excluded time he thought might be considered insignificant. The court found these errors would mislead the jury about what federal law actually requires.
Can other home healthcare companies do the same thing Prestige did?
No. This ruling makes clear that home healthcare workers must be paid for travel time between client homes because that travel is integral to providing in-home care. Companies must also pay for breaks under 20 minutes, calculate overtime on a weekly basis, and maintain proper records. Any company following Prestige’s practices risks the same liability for willful FLSA violations.
What can workers do if they think their employer is doing this?
Workers who believe they are not being paid for all hours worked should document their time as thoroughly as possible, including travel between job sites and short breaks. They can file a complaint with the Department of Labor’s Wage and Hour Division, contact a workers’ rights organization, or consult an employment attorney. Federal law prohibits retaliation against workers who report wage violations.
How long did it take for this case to be resolved?
The first Department of Labor investigation was in 2017. A larger investigation began in 2018, leading to a lawsuit filed in 2021. The District Court granted summary judgment in 2023, and the Circuit Court affirmed on appeal in January 2025. Workers have been waiting eight years from initial detection to final appellate resolution, during which violations continued.
Does this ruling apply nationwide?
The Third Circuit Court of Appeals decision is binding precedent in Pennsylvania, New Jersey, Delaware, and the U.S. Virgin Islands. While not binding in other circuits, it provides persuasive authority interpreting the Fair Labor Standards Act, which is a federal law that applies nationwide. Other federal courts are likely to find this reasoning compelling when faced with similar cases.
Post ID: 2031  ·  Slug: prestige-healthcare-doesnt-pay-its-home-health-aides-employees  ·  Original: 2025-02-18  ·  Rebuilt: 2026-03-20

related:

https://www.dol.gov/newsroom/releases/whd/whd20230602-0

https://oig.hhs.gov/fraud/enforcement/prestige-healthcare-agrees-to-pay-nearly-1-million-for-role-in-alleged-false-billing-of-genetic-testing

https://www.eeoc.gov/newsroom/prestige-care-and-prestige-senior-living-pay-2-million-settle-eeoc-disability

https://www.dol.gov/agencies/whd/fact-sheets/31-flsa-nursing-care

https://www.dol.gov/agencies/whd/fact-sheets/53-healthcare-hours-worked

https://www.cms.gov/newsroom/fact-sheets/medicare-and-medicaid-programs-minimum-staffing-standards-long-term-care-facilities-and-medicaid-0

💡 Explore Corporate Misconduct by Category

Corporations harm people every day — from wage theft to pollution. Learn more by exploring key areas of injustice.

Aleeia
Aleeia

I'm the creator this website. I have 6+ years of experience as an independent researcher studying corporatocracy and its detrimental effects on every single aspect of society.

For more information, please see my About page.

All posts published by this profile were either personally written by me, or I actively edited / reviewed them before publishing. Thank you for your attention to this matter.

Articles: 1692