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Press Releases

U.S. Department of Labor
Wage and Hour Division
Release Number: ESA-WH-09-982-DAL

Date: 

Aug. 20, 2009

Contact: 

Elizabeth Todd

Phone: 

972-850-4710

Baton Rouge, La.-based hotel pays more than $21,000 in back wages following U.S. Labor Department investigation


BATON ROUGE, La. -- Glencalo Inc., doing business as Calloway Inn in Baton Rouge, has paid $21,380 in back wages after an investigation by the U.S. Department of Labor’s Wage and Hour Division found that 49 current and former desk clerks, managers and maintenance workers did not receive appropriate overtime wages as required by the Fair Labor Standards Act (FLSA).

“Some employees worked as many as 70 hours in a workweek without overtime compensation,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “Employees were not only being paid straight time for all hours worked over 40 in a workweek, but the employer failed to increase hourly rates to the recently increased minimum wage. These practices are unacceptable.”

The investigation by the department’s Wage and Hour Division office in New Orleans, La., concluded that Glencalo Inc. failed to pay its workers the required overtime wages, made deductions from employee paychecks to cover cash register shortages and employed an individual under the age of 16 to work more than 18 hours per week while school was in session. In addition, the company failed to maintain required recordkeeping.

Glencalo Inc. cooperated with the investigation and has agreed to future FLSA compliance. Back wages have been paid in full.

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. Youths 14 and 15 years old can work outside school hours, but no more than three hours on a school day and18 hours a week. Employers may not ask employees to reimburse them for cash register shortages.

For information about the FLSA, call the U.S. Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243) or contact the Wage and Hour Division’s district office in New Orleans at 504-589-6171. Information is also available on the Internet at http://www.wagehour.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.