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Motel cleaned up at housekeepers’ expense

by on
in Human Resources,Overtime Labor Laws

Veer Investments—which ­operates an America’s Best Value Inn & Suites motel in Charlotte—careened wildly off course when it decided to ignore almost all the basic requirements of the Fair Labor Standards Act (FLSA). So say investigators from the U.S. Department of Labor Wage and Hour Division, which has secured a settlement that will pay $37,394 to 34 employees.

Investigators found that Veer Investments failed to pay housekeepers the federal minimum wage of $7.25, instead paying them a flat rate of $3 per room. The company paid straight time instead of time-and-a-half overtime pay when housekeepers worked more than 40 hours in a workweek. The workers weren’t paid for time they spent in a mandatory three-day training session. They had their pay illegally docked for alleged disciplinary infractions. The investigation also uncovered overtime and record-keeping violations.  

In addition to paying the workers, the settlement terms call for Veer to comply with the FLSA in the future.

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