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Dallas company stiffed workers, now will pay back overtime

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in Compensation and Benefits,Small Business Tax Deduction Strategies

A staffing company that provides workers for major hotels in the Dallas-Fort Worth area has agreed to pay more than $242,000 to employees after a U.S. Department of Labor (DOL) investigation uncovered Fair Labor Standards Act (FLSA) violations.

The Dallas district office of the DOL’s Wage and Hour Division learned that VIP Hotel Services of Dallas paid office workers their regular rate of pay for all hours worked—which meant it short-changed workers for overtime work. According to the DOL, the company paid housekeepers a rate of $3.50 per room and misclassified them as independent contractors.

Investigators also found that VIP Hotel Services failed to maintain time and payroll records as required by the FLSA.

As a result of the investigation, which the Labor Department initiated after receiving a complaint, VIP Hotel Services will pay more than $242,000 in back wages to 541 current and former housekeepers and office employees. The payments will be based on the actual hours each employee worked.

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