DOL cleans house in two non-compliant Michigan hotels
Best Western Plus Lansing and Red Roof Inn Muskegon were recently ordered to pay more than 700 workers will receive a portion of the $162,000 in back wages. The two hotels in Michigan were recently investigated by the Department of Labor, which uncovered overtime pay and minimum wage violations.
Front desk, housekeeping, banquet, renovation and office staff were not receiving the wages they were owed for their time and attendance. The Wage and Hour Division discovered the hotels were paying employees straight time, or their standard hourly wage, for hours worked exceeding 40. The Fair Labor Standards Act mandates that companies pay non-exempt employees time-and-a-half for any employee attendance beyond that cap.
Moreover, the businesses were taking illegal pay deductions from employees' paychecks and were not compensating workers properly for special events or orientation during the hiring process. The FLSA has very strict regulations about what is considered work time. Even if employees aren't performing their regular tasks, they may still be owed wages if they are required to be on the business' premises.
Employers must adhere to the FLSA's provisions to avoid costly employee rights violations. Using an advanced payroll processing program can help them account for all employee work time and calculate correct wages.
Front desk, housekeeping, banquet, renovation and office staff were not receiving the wages they were owed for their time and attendance. The Wage and Hour Division discovered the hotels were paying employees straight time, or their standard hourly wage, for hours worked exceeding 40. The Fair Labor Standards Act mandates that companies pay non-exempt employees time-and-a-half for any employee attendance beyond that cap.
Moreover, the businesses were taking illegal pay deductions from employees' paychecks and were not compensating workers properly for special events or orientation during the hiring process. The FLSA has very strict regulations about what is considered work time. Even if employees aren't performing their regular tasks, they may still be owed wages if they are required to be on the business' premises.
Employers must adhere to the FLSA's provisions to avoid costly employee rights violations. Using an advanced payroll processing program can help them account for all employee work time and calculate correct wages.
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