Hawaiian hostel charged with FLSA violations

A Hawaiian company operating a dormitory-style hostel on the Island of Waikiki has been ordered to pay $110,000 to 91 employees under violations of the Fair Labor Standards Act, according to the Hawaii Reporter. The suit alleges the hostel circumvented requirements to pay the current federal minimum wage amount of $7.25 per hour by offering rooms and meals as compensation to visiting guests and having them perform employee-related duties during their stay.

These practices are in violation of time and attendance policies outlined in the FLSA covering minimum wage payments, overtime pay, base salary compensation with relation to job duties and employee classifications. The unofficial quid pro quo policy instituted by the hostel was said to have taken employment opportunities away from those living on the island and who were in search for work, according to the director of the department that oversees wage and hour compliance for state workers.

The Hawaii Reporter also noted the company has already paid $16,000 in a retaliation lawsuit filed by a former worker who says they {workers?} were fired after logging a complaint with the State of Hawaii's Wage Standards Division.


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