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.