Investigators representing the U.S. Department of Labor's Wage and Hour Division in the Jacksonville District Office found the hotel Castillo Real to be in violation of time and attendance standards. The lawsuit reflects a larger initiative supported by the DOL to uncover many of the labor violations occurring in the Florida hospitality industry.

The hotel based in St. Augustine has agreed to pay $17,890 to 13 employees who were never given adequate overtime wages despite regularly working in excess of 40 hours per week. The hotel sourced the employees, using the staffing company Maja, LLC, to work in its laundry facilities as well as in housekeeping. Employees were paid a flat rate for all work performed. Moreover, the investigation found some workers were not compensated according to the Fair Labor Standards Act mandated level for minimum wage.

Michael Young, district director of the Jacksonville office, explained there is a developing trend for hotels to use staffing agencies, resulting in a growing number of labor violations, according to WJCT, the Jacksonville NPR affiliate. Moreover, Young stated the rate of non-compliance with FLSA standards in four of the 10 districts in the Southeast ranges between 31 percent and 68 percent. As a result, federal officials are increasingly putting pressure on hotel operators to abide by the rule of law.

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