Hotel to Pay $117,000 in Back Wages for FLSA Violations

Monday, April 13, 2015

Saipan Hotel Corporation, doing business as Hafadai Beach Hotel, in Saipan, Northern Mariana Islands, 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.

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. An employer cannot pay workers only for the hours they think should have been worked, but must pay for the hours actually worked.  

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