Cambridge Behavioral Health Services, a private mental health provider in Greenville, had to pay employees nearly $500,000 in back wages in 2007 after an investigation by the U.S. Department of Labor.
The company, run by state Senate candidate Frankie Bordeaux's family, agreed to pay 117 employees for overtime work and for misclassifing some employees as independent contractors, according to the Labor Department.
Bordeaux, a Democrat, is the administrative director at the company. His wife is the clinical director.
Bordeaux is challenging incumbent Sen. Clark Jenkins in a primary in a district representing Pitt, Edgecombe, and Martin counties.
Last month, Bordeaux and his wife agreed to repay the state $4.2 million in Medicaid overpayments.