US Department of Labor recovers $44K in back wages for 25 workers after Panama City vacation rental provider denied them overtime pay
Employer: Holiday Beach Rentals Inc.
Investigation site: 17614 Ashley Drive
Panama City Beach, FL 32413
Investigation findings: U.S. Department of Labor Wage and Hour Division investigators found that – while the Panama City Beach vacation rental provider paid its property managers at least the minimum weekly salary – the property managers did not supervise any employees and, as a result, the employer failed to meet the requirements to claim an overtime exemption under the Fair Labor Standards Act. Without a valid exemption, Holiday Beach Rentals was required to pay them overtime. Investigators also found the employer failed to include earned non-discretionary bonuses into the regular rate when factoring an overtime rate. In addition, Holiday Beach rentals failed to maintain complete and accurate time and pay records, an FLSA recordkeeping violation.
Back Wages Recovered: $44,271 in back wages for 25 workers.
Quote: “Employers must ensure they classify their workers properly when it comes to salary and exemptions. Failing to do so can result in a costly lesson,” said Wage and Hour Division District Director Wildalí De Jesús in Orlando, Florida. “Employers who fail to realize this and continue to pay workers less that they have earned can quickly find themselves struggling to maintain the workforce needed to stay in business.”
Background: Employers can contact the Wage and Hour Division at its toll-free number, 1-866-4-US-WAGE. The division also offers numerous online resources for employers, such as a fact sheet on Fair Labor Standards Act wage laws overtime requirements. Workers who feel they may not be getting the wages they earned may contact a Wage and Hour Division representative in their state through a list and interactive online map on the agency’s website. Help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free.