The U.S. Department of Labor highlighted a trend in labor violations stemming from improper documentation of time and attendance in addition to inadequate compensation based on federal standards for minimum wage and overtime pay. Investigations have been extensive, as the agency has looked into hospitality management activities more than 4,000 times since 2009. Consequently, over 23,000 employees across the U.S. have collectively received back pay in excess of $12 million.

More recently, a Denver staffing agency and owners of national hotel chain were investigated for violating the Fair Labor Standards Act. The Denver Business Journal explained management at the Grand Hyatt Denver failed to pay employees for overtime work and deducted pay for regularly scheduled breaks regardless of whether employees took them. The 52 employees involved in the lawsuit have been paid more than $55,000 in back wages for not receiving fair pay for working before and after scheduled shifts.

Xclusive Staffing was responsible for providing the temporary workers to the Grand Hyatt and was levied an additional civil penalty of more than $3,500. By implementing time and attendance software, employers can easily avoid violations to national labor laws and the associated legal costs.

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