Overtime Violations Cost Hotel Group
A hotel chain in Texas and New Mexico — MCM Elegante and MCM Grande Hotels — recently agreed to pay $78,876 in overtime to some 200 employees.
The DOL Wage and Hour Division (WHD) investigation concluded that dishwashers, bartenders, wait staff, bellhops, housekeeping and maintenance workers were not paid overtime and/or minimum wage as required under the FLSA. Housekeepers were paid a flat rate, based on the number of room cleaned without regard to minimum wage or overtime rules. The FLSA's piece rate regulations — located at 29 CFR §778.111 and §778.418 — have been in force more than three decades. The employer simply ignored the rules.
“Despite the often luxurious settings, we find workers often subject to unjust treatment and wage violations,” Cynthia Watson, Southwest WHD regional administrator said of the four-star hotel system. “The department remains vigilant in its commitment to ensure these employees receive every penny they rightfully earn. Our enforcement protects not only the workers, but also the employers who play by the rules and deserve a level playing field.”
The WHD also found significant recordkeeping violations, a common occurrence in these types of situations. Tracking employee attendance is not as easy as you might think. Employers will a significant non-exempt population need to invest in a quality time and attendance system. An excellent option is TimeForce from Infinisource. For a demo or quote, please click here.
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