Hilton Hotel settles overtime lawsuit with $2.5 million

The Hilton Hotel near the Los Angeles Airport (LAX) recently settled an employee overtime lawsuit by paying workers $2.5 million in back wages. The money will be dispersed among approximately 1,200 employees who were denied proper compensation for their time attendance.

According to the lawsuit, the employer withheld wages, failed to pay overtime or provide adequate meal breaks. Workers were allegedly asked to falsify timesheets, recording break times even when they weren't taken. Additionally, hotel employees said they weren't paid for time spent putting on and taking off uniforms that had to be left at the business' location.

The number of employee overtime claims is on the rise, and the Department of Labor (DOL) is cracking down on employers whose payroll practices are not in compliance with the Fair Labor Standards Act (FLSA). By law, businesses are required to pay employees minimum wage for all of their hours worked and time-and-a-half for overtime. They must also meet recordkeeping provisions as outlined by the FLSA.

Employers can avoid costly lawsuits by keeping payroll practices up-to-date and ensuring they are keeping close records of employee work time with a timeclock or another timekeeping system.