Wage and Hour Division (WHD)

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RICHMOND, Va -- The U.S. Department of Labor’s Wage and Hour Division has completed a 2008 compliance initiative in the hotel and motel industry of central and southeastern Virginia, including the Tidewater area. The initiative aimed to promote compliance with the minimum wage, overtime, recordkeeping and child labor provisions of the Fair Labor Standards Act (FLSA), and ensure that employees are compensated and employed in accordance with the law.

“It is important for employers to know, understand and follow the law,” said Bruce Clark, director of the division’s Richmond District Office. “Those companies that fail to comply are liable for back wages, and may be assessed liquidated damages and civil money penalties, and their employees are entitled to full compensation.”

As part of the effort, the agency sent area employers compliance assistance information, including the FLSA Hotel and Motel Fact Sheet Number 45, an FLSA reference guide and an FLSA poster. The division also worked with the Virginia Hospitality and Travel Association to distribute compliance assistance materials to employers within the industry. Its Richmond District Office later conducted investigations of hotels and motels in the area to determine their compliance with the FLSA.

Wage and Hour Division investigators identified several types of FLSA violations within the hotel and motel industry. The most common violations included a failure to pay overtime premiums to non-exempt employees and non-existent or incomplete records for all hours that the employees worked. Maintenance, housekeeping and front desk staff were most commonly affected by the violations. Seven establishments paid nearly $25,000 in back wages to more than 50 employees as a result of the initiative’s investigations. The division’s Richmond office will continue its efforts to promote compliance in this industry in future years.

The FLSA requires covered, nonexempt employees to be paid the federal minimum wage for all hours worked, and time and one-half their regular rates of pay for hours worked beyond 40 in a work week. Nonexempt employees who are paid on a commission or salary basis must also receive at least the minimum wage and overtime premiums, just as hourly paid employees are entitled to the minimum wage and overtime compensation. Nonexempt employees must be paid for travel time that is a part of his or her principal activity, such as the travel time going from jobsite to jobsite during the workday. Employers must maintain accurate time and payroll records.

The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional and outside sales employees. To qualify, employees generally must meet certain job duty and salary tests. Information about the current exemption can be found on the Internet at www.dol.gov/fairpay.

The federal minimum wage for covered, nonexempt employees is $6.55 per hour. Effective July 24, 2009, the minimum wage will increase to $7.25 per hour. For more information about the FLSA, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at www.wagehour.dol.gov.

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U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.