MCM Grande & MCM Elegante pay $79,000 in back wages — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

MCM Grande & MCM Elegante pay $79,000 in back wages

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in Human Resources,Overtime Labor Laws

A U.S. Department of Labor Wage and Hour Division investigation has resulted in the MCM Grande and MCM Elegante hotels paying back wages and missed overtime to em­­ployees at several of its locations in Texas and New Mexico. Two hundred dishwashers, bartenders, waitstaff, bellmen, housekeeping and maintenance workers will split the payout.

Odessa-based HTL Operating, which owns the hotels, agreed to pay the back wages covering employees at locations in Albuquerque, Abilene, Beau­­­mont, Dallas, DeSoto and Odessa.

Among the violations discovered, HTL paid housekeepers a flat rate for each room cleaned regardless of the number of hours worked. They didn’t receive overtime pay.

Note: Employers may like piece rate as a way of spurring production, but it can often result in some workers not earning minimum wage. That’s a red flag to investigators. Also, any piece-rate scheme must contain a provision for overtime.

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