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News Brief

Saipan hotel to pay more than $117K in back wages to 84 employees

Employer: Saipan Hotel Corporation, doing business as Hafadai Beach Hotel

Site: Saipan, Northern Mariana Islands

Investigation findings: The employer failed to meet the required minimum wage and overtime requirements of the Fair Labor Standards Act by not paying housekeepers, servers, and maintenance and office workers for all the hours they worked. The firm did not pay for time worked before and after scheduled shifts or for work performed during meal breaks. Investigators from the Wage and Hour Division also found that several salaried management workers were incorrectly categorized as "exempt" from overtime requirements for hours worked beyond 40 in a workweek. These workers did not receive at least the minimum guaranteed salary of $455 per week required for the overtime exemption to apply.

Resolution: The employer has agreed to pay $117,000 in back wages to the employees and developed a compliance action plan to ensure adherence to the FLSA in the future.

Quote: "An employer cannot pay workers only for the hours they believe should have been worked, but must pay for the hours actually worked," said Terence Trotter, the division's district director in Honolulu. "We appreciate this employer's full cooperation and their compliance will not only benefit their employees but levels the playing field for law abiding employers."

Information: For more information about federal wage laws administered by the Wage and Hour Division, call the agency's toll-free helpline at 866-4US-WAGE (487-9243), or the Honolulu office at 808-541-1361. Information also is available at

Wage and Hour Division
April 8, 2015
Release Number
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali