Hotel Employees Get $162K in Back Wages - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Hotel Employees Get $162K in Back Wages


712 hotel employees will receive $162,147 in back wages after an investigation by the U.S. Department of Labor's Wage and Hour Division.

The violations were discovered at the Best Western Plus Lansing and the Red Roof Inn Muskegon for front desk, office, housekeeping, banquet and renovation staff. It impacted their overtime, minimum wage and record-keeping provisions.

Investigators determined that the employer violated minimum wage regulations by taking pay deductions for breaks and lunch periods that employees didn't receive, failing to pay for hours worked at special events and requiring new hires to perform four hours of uncompensated work in the department for which they were being considered for employment. The investigation also disclosed overtime violations due to the payment of a "straight time" rate for hours worked beyond 40 hours per week.

A total of $158,986 was found to be owed to 603 workers at the Best Western Plus Lansing, and $3,161 owed to 109 workers at the Red Roof Inn in Muskegon.

The employer has signed an agreement to pay all the back wages in full and to comply with the FLSA. Additionally, the agreement requires the employer to provide information about the FLSA to employees in the company's employee handbook or directly to each new employee at the time of hire. 

Minimum wage in Michigan is $7.25 an hour, plus time and one-half regular rates for 40 or more hours a week.

For more information about the FLSA and other federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit their website.

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