The U.S. Department of Labor (DOL) has announced an initiative to investigate employee misclassification in the hospitality industry in Dallas. According to a department statement, previous investigations “have found significant and systemic violations of the minimum wage, overtime pay and record-keeping provisions of the Fair Labor Standards Act.”
DOL officials say many of the violations result from hotels misclassifying workers as independent contractors when they should be employees.
The department claims past investigations have revealed the hospitality industry frequently uses “subcontracting, franchising, third-party, the use of staffing agencies and other practices that obscure the worker-employer relationship.”
Based on earlier sleuthing, the DOL says it believes Dallas-area hotels also regularly short worker pay by miscalculating hours worked, paying housekeepers by the room instead of by the hour and refusing to pay overtime.
Note: Regardless of your industry, now is a good time to examine your contracting practices. Better for you to identify and proactively solve misclassification problems than have government inspectors discover them.