Hotels and motels generally employ a large staff who fulfill a variety of roles. It might be difficult for employers to accurately track the
time attendance of each employee, but a failure to do so could result in heavy fines from the Department of Labor. All establishments are required to provide workers with basic employee benefits, including minimum wage and overtime pay under the Fair Labor Standards Act (FLSA).
According to the Department of Labor's Wage and Hour Division, the most common ways hotels and motels violate FLSA provisions include:
- Misclassifying employees as salaried employees regardless of their job duties to avoid paying them overtime wages. Workers are considered exempt only if their daily tasks meet requirements for executive, professional, administrative and outside sales positions as outlined by the FLSA.
- Failing to pay minimum wage or overtime rates to temporary employees or workers hired through leasing firms who are jointly employed.
- Employers failing to make up the difference between employees tips and minimum wage requirements, workers receiving only tips, and pooling gratuity among both tipped and non-tipped employees.
- Employers failing to pay tipped employees for overtime
employee attendance.
Hotels and motels can ensure they are in compliance with the FLSA by conducting a payroll audit to identify any potential problems.
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