Texas hotel has to pay out $50k in withheld overtime

A high-end hotel located near a Texas airport was recently ruled against in a time and attendance lawsuit that noted the business willfully violated various Fair Labor Standards Act provisions, including rules regulating minimum wage and overtime.

Besides the $50,000 ordered to be paid back to current and former employees, the hotel will also pay nearly $10,000 in fines and penalties directly to the U.S. Department of Labor because of the willful nature of the labor law violations, according to local NBC affiliate KVOA.

Hotel management kept two sets of books for staff at the hotel, recording hours worked separately so that employees who worked more ,40 hours per week didn't receive overtime wages.

The FLSA is clear in both its requirement for overtime pay after 40 hours at a rate of one-and-one-half times the regular compensation, as well as for the retention and maintenance of proper records. Employment information, including worker address and other personal and job-related information, must be retained for three years, while compensation records need to be kept for two years.

Organizations keen on staying complaint with the FLSA should consider the use of employee management software to create and maintain necessary employee information.


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