A Honolulu outpatient mental health provider has paid more than $400,000 in back pay to 226 current and former employees following an investigation by the U.S. Department of Labor.

Care Hawai'i Inc. agreed to pay $409,771 to the employees who complained that they were improperly classified as exempt and did not receive overtime pay as required by the Fair Labor Standards Act. Investigators from the department's Wage and Hour Division determined that the employees, all social workers, were entitled to the overtime pay.

The employees received back pay for work performed between August 2004 and July 2006.

Care Hawai'i officials could not be reached for comment yesterday.

The Department of Labor said the company's owners, Dennis and Tina McLaughlin, worked with the agency to resolve the matter.

"This action reflects the Department of Labor's commitment to protecting overtime rights and ensuring that workers receive the wages they have earned," said George Friday Jr., regional administrator for the Wage and Hour Division. "The company's cooperation is a model for others in resolving overtime pay issues amicably, with the common goal of compliance."

In addition to the back-pay matter, Care Hawai'i also failed to keep complete records of hours worked, the Labor Department said.