Resorts settle with DOL over FLSA violations, pay out more than $1M

A group of prominent ski resorts and other hospitality providers in the Aspen, Colo. area have reached an agreement with the U.S. Department of Labor over violations of employee time and attendance standards.

News source Law 360 reported that the group settlement involved approximately 40 companies and the total amount of the settlement was slightly less than $1 million, with the organizations paying out different amounts based on the extent of their violations. The DOL found that the companies inaccurately calculated wages, providing less compensation than was required.

Restaurants in the area, some associated with the resorts and some independent, were also found to have provided an inadequate amount of pay to their employees based on hours worked. The three largest judgments against restaurants totaled more than $250,000.

Human resources news provider BLR.com pointed out that the investigation and subsequent rulings are part of an overall effort to improve labor law compliance in the hospitality industry. Because workers in that field often earn at or near the minimum wage, they are especially vulnerable to miscalculation of earnings by employers.

Businesses in all industries can improve record-keeping compliance and employee payment compensation by using employee management software.


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