News Release

US Department of Labor recovers $67K in back wages after finding Fayetteville Days Inn franchisee shorted workers’ pay

Employer’s pay-per-room practice failed to meet minimum wage requirements

FAYETTEVILLE, NC – Hotels commonly pay housekeepers on a piece-rate basis, often basing their pay on the number of rooms they cleaned or tasks they accomplished. When that approach allows workers’ wages to fall below the federal minimum wage, the employer has violated the Fair Labor Standards Act.

An investigation by the U.S. Department of Labor has found NJ Hospitality LLC – operator of a Days Inn location in Fayetteville – violated FLSA minimum wage requirements when their piece-rate pay practice caused some housekeepers’ average hourly rate to fall below the federal minimum wage of $7.25 per hour. Investigators with the department’s Wage and Hour Division also determined the employer paid straight time to employees, instead of required time-and-a-half overtime wages when they worked more than 40 hours in the workweek.

As a result of the investigation, the division recovered $67,556 in back wages for 18 employees.

“These essential workers deserve to be paid all the wages they legally earned,” said Wage and Hour Division District Director Richard Blaylock in Raleigh, North Carolina. “Employers cannot make deals with their employees that fail to comply with the law, even if both parties agree to the terms. Workers cannot waive their rights to be paid minimum wage and overtime as the law requires. We encourage employers to use our resources or contact us with their questions to avoid violations like those found in this case.”

For more information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.

Agency
Wage and Hour Division
Date
July 14, 2021
Release Number
21-1035-ATL
Contact: Erika Ruthman
Contact: Eric R. Lucero
Phone Number
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