A spa and resort located in Tampa Bay, Fla. agreed to pay more than $30,000 in back wages to 37 employees.
The Department of Labor's Wage and Hour Division launched the inquiry late in 2013, specifically investigating a two-year period dating back to 2010, according to Tampa Bay Times.
The spa violated the Fair Labor Standards Act by failing to pay employees for all hours worked. Employers illegally docked staff for time worked prior to designated shifts. The business also withheld pay for break periods, whether or not employees actually took them.
According to James Schmidt, the Wage and Hour Director at the Tampa office, it's illegal for employers to falsify employee hours on time cards.
In addition, the spa did not make up the difference in wages for tipped workers when the tips did not add up to the federal minimum wage of $7.25. Under FLSA, employers are allowed to pay a tipped minimum wage, provided gratuities workers receive add up to the legal minimum rate. The resort also calculated time-and-a-half overtime pay based on the tipped wage rather than the legal minimum wage.
To avoid legal penalties, workplaces need to implement accurate attendance software. They also need to maintain wage records to maintain compliance with FLSA.
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