A federal judge ordered Sunrise Home Care Inc. in Brewster and owner Elsa Silva on March 1 not to interfere with a U.S. Department of Labor investigation of possible wage and overtime violations.
The Labor Department claims that Sunrise has “embarked on an unlawful scheme intended to obstruct and/or interfere with the department’s investigation.”
But attorney Scott J. Steiner declared in a court filing that Sunrise denies the alleged violations and has cooperated with investigators. He argued that the government’s accusations are so “threadbare” and “anemic” as to not justify a proposed temporary restraining order that U.S. District Judge Vincent Briccetti granted on the following day.
Sunrise employs home health aides who assist elderly patients and people with disabilities with a variety of tasks. They drive patients to medical appointments, run errands, manage medicines, help with exercises, prepare meals, and groom and clothe clients.
Silva founded Sunrise in 2008. She had worked for 15 years in the home health business, according to a profile on Sunrise’s website, and “has dedicated her career to providing affordable, reliable care.”
The labor department began investigating Sunrise in January, according to a Feb. 24 complaint filed in U.S. District Court, White Plains, to determine whether it complies with the Fair Labor Standards Act. The complaint does not say what prompted the investigation.
On Jan. 5, investigators met with Silva and notified her of the investigation.
She allegedly acknowledged that she does not pay home health aides overtime wages — no less than the 1.5 times the federal minimum wage — for all hours worked over 40 hours a week.
Investigators also alerted Silva to an anti-retaliation law that protects employees who complain about wage and hour violations. She was told, according to the lawsuit, that employee interviews are confidential and she may not question employees about the interviews.
But shortly after the Jan. 5 meeting, the government claims, Silva did just that.
She allegedly tried to identify who had complained to the government, told aides to lie to investigators about their hours and wages, and directed aides to tell investigators that they had voluntarily agreed not to be paid overtime wages.
She told aides that if she had to pay overtime wages, the complaint states, she would have to close the business, they would lose their jobs and they would have to kick back any back wages they received.
The government claims that at least one aide stopped cooperating with investigators.
The Labor Department accused Silva and Sunrise of retaliation and obstruction, under the Fair Labor Standards Act, and asked the court to restrain them from violating anti-retaliation laws.
Steiner said in a court filing that Sunrise considers the home health aides as independent contractors who control the services they provide.
How the aides are classified will be determined by a court, he said. But as to whether Silva and Sunrise should be restrained he said they have been cooperating with investigators.
Sunrise’s roster of “contractors” has been turned over to the government, for instance. And in the 40 days before the lawsuit was filed, no one from the Department of Labor raised any concerns about continuing violations.
Judge Briccetti found sufficient reason to issue a temporary restraining order.
He ordered the defendants to let a Labor Department representative read a statement to all home health aides who have worked for Sunrise in the past three years, in English, Spanish, Portuguese and any other language that is necessary, telling them they are protected and may speak freely with investigators.
He enjoined Silva and Sunrise from threatening, coercing, retaliating or discriminating against the aides to dissuade them or prevent them from speaking to investigators.
