Labor & Employment Law — 10/19/09

DOL secures nearly $100,000 in overtime back wages for employees of Decatur Hotels

The Department of Labor announced on October 16, 2009, that New Orleans-based Decatur Hotels will pay $98,907 in back wages to 114 maintenance employees for failing to properly pay overtime in violation of the Fair Labor Standards Act (FLSA). Civil money penalties total $5,000.

"All employees are entitled to receive all the wages they have rightfully earned," said Cynthia Watson, the Wage and Hour Division's regional administrator for the Southwest. "In this case, the employer misclassified workers as independent contractors when, in fact, they were entitled to receive overtime compensation."

A consent judgment was filed in the United States District Court, Eastern District of Louisiana against Decatur Hotels following an investigation by the Labor Department's Wage and Hour Division in New Orleans, which determined that the company paid straight time hourly rates for overtime hours to workers employed to clean up debris in the aftermath of Hurricane Katrina. Decatur has agreed to pay the full amount of back wages and civil money penalties, as well.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records. For purposes of the FLSA, there are a number of factors for determining whether an individual is an independent contractor or an employee.

For information about the FLSA, call the Department of Labor's toll-free helpline at 866-4US-WAGE (487-9243) or contact the Wage and Hour Division's district office in New Orleans at 504-589-6171. Information is also available on the Internet at http://www.wagehour.dol.gov.

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