Hotel Pays Penalty for Manipulating Time System

A hotel operator deliberately kept two sets of time records in an effort to avoid paying overtime. The result was predictable. The employer was caught and had to pay almost $42,000 in back wages and penalties.

The DOL's Wage and Hour Division (WHD) recently announced a consent judgment in federal court against Viharas Group Inc., doing business as DoubleTree Suites by Hilton in Tucson, and its owner. Some 44 employees as were victims of a scheme that violated the FLSA's overtime, minimum wage and record-keeping rules.

“The resolution of this lawsuit demonstrates the department's commitment to pursuing violators vigorously to ensure compliance with the law,” said Eric Murray, WHD director of the Phoenix District. “Other hotel and motel employers should learn from this case and review their own practices to ensure their workers are paid the legally required wages for all work hours.”

Here is what happened. Management deleted overtime hours from the electronic time system and them on separate time sheets. Those hours were reimbursed by cash at less than the required overtime rate. The settlement requires the employer to revise its handbook to include FLSA information and hire a consultant to train all employees and supervisors.

The hospitality industry often employs low-wage workers who are particularly vulnerable to wage-and-hour abuses. WHD has focused its resources on these types of employers. Since 2009, WHD has completed more than 5,300 cases involving hotel and motel employers, recovering more than $17.2 million in back wages for more than 31,000 employees.

Attendance management is vitally important to all employers. The timekeeping software you use must be fully compliant with the FLSA and applicable state laws. For a comprehensive timekeeping software solution, consider Infinisource's TimeForce. Click here to set up a demo today.

Unique views: 3,184

Total views: 3,186

Related Headlines