Wage and Hour Division (WHD)
U.S. Department of Labor
DALLAS -- VIP Hotel Services LLC has agreed to pay $242,687 in overtime back wages after an investigation by the U.S. Department of Labor’s Wage and Hour Division found that 541 current and former housekeepers and office employees were not properly paid as required by the Fair Labor Standards Act.
“This action underscores the Labor Department’s commitment to ensure that individuals receive the wages they work hard for and deserve,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “Employees of this company worked as many as 70 hours in a workweek without overtime compensation, a situation that is both illegal and unacceptable.”
The investigation by the Wage and Hour Division’s Dallas District Office, covering the period from Sept. 18, 2008, to Sept. 16, 2010, determined that the company paid office workers “straight time” for all hours worked. Housekeepers were paid a flat rate of $3.50 per room and were misclassified as independent contractors when, in fact, they were employees who should have been paid time and one-half their regular hourly rates of pay for hours worked over 40 in a workweek. Additionally, the company did not maintain required recordkeeping.
VIP Hotel Services is a staffing company that provides workers for major hotels in the Dallas-Fort Worth area, including Sheraton and Radisson establishments.
The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records.
For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243) or the division’s Dallas office at 817-861-2150. Information is also available on the internet at http://www.dol.gov/whd
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