Hotel workers cheated proper compensation; DOL recovers funds
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Hotel workers cheated proper compensation; DOL recovers funds

| Jul 16, 2021 | Employment Law

When laws are not followed, victims of the violations can suffer in many ways. While some of the results may seem inconsequential in the long run, serious issues could result if an employer violates the Fair Labor Standards Act, particularly in relation to proper compensation. Unfortunately, it is relatively common for employers in Michigan and elsewhere to allow employee compensation to fall below minimum wage standards, which can lead to financial difficulties for workers and other problems.

It was recently reported that an employer in another state is being held accountable for the missing wages of hotel staff. Apparently, the situation involved housekeepers whose hourly wage rate fell below the federal minimum wage. Additionally, some workers were provided pay for straight time rather than time and a half when they worked overtime hours.

Further details regarding the situation include the following:

  • An investigation by the U.S. Department of Labor uncovered multiple violations.
  • At least 18 workers were affected by the pay violations.
  • The DOL was able to recover over $67,500 for the affected workers.

Not receiving proper compensation for work is more than simply missing out on money. It could mean that a person is not able to meet his or her needs or the needs of a family despite working full time. It could also put workers in a position of fear because they worry that they will lose their much-needed job if they report the issues. However, if Michigan workers believe that their employer is committing wage violations, reporting the problem and taking legal action to receive rightful compensation may be worth considering.