The Department of Labor’s Wage and Hour Division is continuing to crack down on wage and hour violations in the hospitality industry. Hilton Reservations Worldwide LLC is the latest company hit with a costly settlement. According to the DOL, Hilton has agreed to pay $715,507 in minimum and overtime back wages to 2,645 current and former customer service employees following an investigation by the Wage and Hour Division that found violations of the Fair Labor Standards Act.
As detailed by the DOL in a press statement, an investigation by officials from the Wage and Hour Division’s Dallas District Office found that the company failed to pay employees for work performed prior to clocking in at the start of their scheduled shifts, such as booting up a computer, opening programs required to assist customers and reading pertinent emails.
Consequently, the employees did not receive at least the minimum wage for this time, as required by the FLSA. Additionally, because the time was not included in employees’ total hours worked, which is used to calculate overtime wages, they did not receive the correct overtime rate of pay. Finally, the employer failed to maintain the required records.
The hotel chain must pay a total of $456,343 to 1,443 reservation and customer care workers at the Carrollton location; $213,314 to 1,012 employees in Tampa, Fla.; $30,370 to 130 workers in Hazelton, Pa.; and $15,480 to 60 workers in Streator, Ill.
According to the DOL, Hilton has agreed to fully comply with the FLSA in the future, and payment of the back wages is ongoing.