Wage and Hour Division (WHD)

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GRAND RAPIDS, MICH. --

Rosenbaum-Cunningham International Inc. (RCI), a staffing contractor that employed workers at the Grand Traverse Resort & Spa in Acme, Mich., has paid $90,279 in minimum wage and overtime back wages to 86 workers following an investigation by the U.S. Department of Labor. RCI is headquartered in Palm Beach, Fla.

“The Labor Department is committed to vigorously enforcing the law to ensure that employees, especially low-wage workers as in this case, are paid all wages they are owed,” said James Smith, district director of the department’s Wage and Hour Division in Detroit.

The department’s Wage and Hour Division investigated Grand Traverse Resort and its staffing contractors under the Fair Labor Standards Act (FLSA), the federal wage and hour law. The investigation disclosed that housekeepers, kitchen workers, and grounds maintenance workers employed by RCI, a contractor at the Grand Traverse Resort, were not paid overtime pay for hours worked in excess of 40 in a week. In some weeks, RCI paid workers less than the federal minimum wage. RCI also failed to keep an accurate record of hours worked by employees. The violations occurred during the period July 2002 to July 2004.

The investigation found that 49 workers were due $4,047 for minimum wage violations. The department also found that 86 workers were due $86,232 for overtime pay violations. In total, 86 employees were owed $90,279 in back wages.

After the Wage and Hour Division explained the requirements of the law, RCI agreed to pay all back wages owed to employees. RCI also agreed to comply with the federal wage and hour law in the future.

The FLSA requires employees to be paid the minimum wage for all hours worked and time and one-half the regular rate of pay for hours worked over 40 in a week. Employers must also maintain accurate time and payroll records.

The Wage and Hour Division recovered nearly $200 million in back wages in fiscal year (FY) 2004 for more than 288,000 workers. Average days to resolve a complaint decreased in FY 2004 from 108 days to 92 days.

For more information about the FLSA, call the Department of Labor’s toll-free help line at 1-866-4USWAGE (1-866-487-9243). 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.