State Contractor Accused of Denying Overtime Pay to Thousands of Pennsylvania Home Care Workers

Source: Business Wire, May 12, 2017
 
A major state contractor has been accused of systematically failing to pay overtime wages to thousands of home care workers in Pennsylvania in a lawsuit filed Thursday in federal court. The suit alleges Public Partnerships, LLC, a subsidiary of the nationwide management consulting firm Public Consulting Group, knowingly refused to pay workers for overtime despite its active role in hiring employees, administering services and issuing paychecks, a violation of federal and state laws governing wages and labor conditions. The issues raised in the case mirror those at the forefront of ongoing litigation throughout the country on joint employers and their responsibilities to their workers. …

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Performance Audit: Department of Public Welfare’s Oversight of Financial Management Services providers
Source: Commonwealth of Pennsylvania, Department of the Auditor General, November 2013

From the press release:
Auditor General Eugene DePasquale today said an audit of a Department of Public Welfare shows long-term mismanagement of home care worker payroll providers caused undue financial and emotional strain on tens of thousands of people. Thousands of workers had paychecks delayed for up to four months. … Beginning in December 2008, DPW had agreements with 36 different providers for payroll services of home care workers across the state. However, from 2009 through 2012, auditors found that DPW did not adequately monitor these providers resulting in numerous instances of noncompliance with applicable state and federal laws, regulations, and financial services standards by some of the providers. … DPW issued a request for applications in January 2012, and in August 2012 selected the Boston, Mass.-based vendor, Public Partnerships Limited, to provide payroll service statewide. In the short time frame that DPW had to transition 20,000 care recipient files to Public Partnerships Limited, DPW ignored many red flags — including concerns expressed by the vendor — that the new vendor was not fully prepared to pay all direct care workers by the DPW-imposed Jan. 1, 2013 deadline. The audit also found significant flaws in the procurement process used to select Public Partnerships Limited. …
Related:
Audit Summary