TAMPA, FL – A recent U.S. Department of Labor investigation into Healthplan Services Inc., a Tampa-based healthcare benefits management provider, has led to significant changes in the company’s payroll practices. The investigation, conducted by the department’s Wage and Hour Division, uncovered violations concerning pre-shift work and overtime pay, potentially impacting over 2,000 local employees.
The core of the investigation revealed that HealthPlan Services failed to compensate employees for the time they spent on essential pre-shift tasks. These tasks included setting up their computers and logging into necessary software applications before their official shifts commenced. Furthermore, the Department of Labor found that HealthPlan Services improperly calculated overtime pay by not including bonuses in the base rate, resulting in overtime payments that were below the legally mandated rate.
As a result of these findings, the Wage and Hour Division successfully recovered $105,200 in back wages for 92 affected employees. Beyond the financial restitution, HealthPlan Services has committed to a company-wide overhaul of its pay practices. This agreement aims to rectify the identified violations and ensure future compliance with the Fair Labor Standards Act.
Nicolas Ratmiroff, Wage and Hour Division District Director in Tampa, Florida, stated, “Failing to accurately account for and compensate employees for pre-shift work is a prevalent violation of federal labor laws. These seemingly minor periods of unpaid time accumulate and can lead to significant minimum wage and overtime violations. Federal law is clear: workers must receive every penny they have earned for their work.” Ratmiroff encourages employers to proactively seek guidance from the Wage and Hour Division to ensure compliance, adding, “If employers are uncertain about federal regulations regarding work hours or wage payments, we urge them to contact us for clarification and to prevent potential violations.”
HealthPlan Services, a subsidiary of Wipro Limited—a global information technology, consulting, and business process services firm based in Bengaluru, India—operates as an independent provider. They offer a range of services to the health insurance and managed care sectors, including sales, benefits administration, retention strategies, and technology solutions.
For individuals seeking more information regarding the FLSA and other statutes enforced by the Wage and Hour Division, the agency provides a toll-free helpline at 866-4US-WAGE (487-9243). Additional resources, including a search tool to check for potential back wages collected by the division, are available on the Wage and Hour Division website.
