The U.S. Department of Labor has taken legal action against TEAM Abilities LLC and its founder and CEO Rachel Jelks, seeking to stop the company from violating federal employment regulations and to recover back wages and damages for dozens of current and former employees. The complaint, filed in the U.S. District Court for the Southern District of Texas, alleges that TEAM Abilities, which operates 17 single-family residential group homes and a day habilitation center for adults with disabilities, willfully failed to pay overtime wages to employees who worked more than 40 hours per week, in violation of the Fair Labor Standards Act (FLSA).

The Department of Labor’s Wage and Hour Division investigation revealed that TEAM Abilities required direct care staff to work 16-24 hour shifts without providing adequate sleeping accommodations or rest periods. Staff members often slept in recliners or on couches and were frequently interrupted to provide resident care throughout the night. Despite these conditions, Jelks and TEAM Abilities paid many employees straight time for all hours worked.

The investigation also uncovered that Jelks willfully withheld overtime pay from some direct care employees who requested to be classified as independent contractors for tax purposes. This classification is not permitted under federal law. The department calculated $115,077 in overtime wages and an equal amount in liquidated damages owed to 56 current and former workers, with these amounts continuing to increase due to ongoing violations.

“Employers must pay time and one-half an employee’s regular rate for all hours worked over 40 in a workweek when the employee is not exempt under the FLSA,” said Southwest Regional Wage and Hour Division Administrator Betty Campbell. “Our investigation found T.E.A.M. Abilities violated the law willfully and continues to ignore it while its employees suffer financially.”

The department’s legal filing seeks back wages for a three-year period due to the willful nature of the violations, an equal amount in liquidated damages, and an injunction to ensure future compliance with the FLSA. The department also requests that the court assess TEAM Abilities with the department’s litigation costs and grant any further relief deemed necessary.

Regional Solicitor of Labor John Rainwater emphasized, “The Department of Labor is committed to protecting workers’ rights to be paid all of their hard-earned wages and will use all legal means necessary to recover their money. T.E.A.M. Abilities and CEO Rachel Jelks will ultimately learn there are costly consequences for employers who mistakenly believe they can refuse to comply with federal labor regulations.”

TEAM Abilities LLC, based in Spring, Texas, provides assisted living services in the Houston area, including support with adaptive equipment, caregiver relief, community living, mental health services, and job placement.