Tag Archives: Payroll

by | December 13, 2013 · 12:06 pm

Hospitality Industry Employment Risks: Florida Hotel Settles Federal “Wage Violation” Investigation For $30,000 In Back Pay; Failed To Maintain Accurate Payroll Records

“Even when an employer contracts with a payroll service company, as this one did, the employer is required by federal labor laws to record and Hospitality Industry Wage Violation Lawsuitsmaintain accurate records of hours worked by employees. The employer is responsible for submitting accurate data for the preparation of employees’ paychecks,” said James Schmidt, director of the Wage and Hour Division’s Tampa District Office. “It is illegal for an employer to falsify the number of hours worked by employees.”

The division has noticed the noncompliance in the hospitality industry and is concentrating its resources on investigating and remedying violations, informing workers of their rights and providing compliance assistance to employers. Since 2009, the division has concluded nearly 5,100 cases involving hotel and motel employers, resulting in more than $16.1 million in back wages for more than 30,000 workers nationwide.

Olympia Development Group LLC, doing business as Safety Harbor Resort and Spa in Tampa, has paid 37 employees $30,786 in back wages after an investigation by the Wage and Hour Division of the U.S. Department of Labor identified violations at the resort of the Fair Labor Standards Act’s overtime, minimum wage and record-keeping provisions.

The investigation disclosed that management changed employees’ time records, removing hours they had worked before and after their scheduled shifts, and deducting meal breaks, regardless of whether those breaks had actually been taken. These deductions from employees’ timecards, in addition to violating record-keeping provisions, resulted in both minimum wage and overtime violations when hours worked went unpaid.     Additionally, tipped employees were paid in violation of FLSA minimum wage requirements when, in addition to their direct cash wages they received from the employer, they did not collect enough in tips to earn minimum wage, yet the employer failed to make up the difference. Tipped employees were also paid in violation of FLSA overtime requirements when their overtime rates were based on time and one-half their direct cash wages rather than the full minimum wage of $7.25 per hour.

The employer has paid all the back wages found due and has agreed to comply with the FLSA in the future.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour, as well as time and one-half their regular rates of pay for hours worked over 40 per week. In general, hours worked includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal work activity to the end of the last principal activity of the workday. Additionally, the law requires that accurate records of employee’s wages, hours and other conditions of employment be maintained.

The Wage and Hour Division’s Tampa District Office can be reached at 813-288-1242. Information on the FLSA and other federal labor laws is available by calling the division’s toll-free helpline at 866-4US-WAGE (487-9243) or by visiting http://www.dol.gov/whd.

For more: http://www.dol.gov/whd/media/press/whdpressVB3.asp?pressdoc=Southeast/20131210.xml

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by | October 7, 2013 · 5:46 am

Hospitality Industry Employment Issues: Restaurants Increasingly Use “Payroll Debit Cards” To Save Money And Time; Workers Must Be Legally Notified Other Payment Options Exist

For managers, Darden says the cards eliminate two hours of paperwork each pay period. Employees incur no fees if they use their cards at more Hospitality Industry Payroll Debit Cardsthan 40,000 Allpoint ATMs nationwide and make purchases at places that accept Visa cards…They can be a convenient option for workers who don’t have checking accounts, a common situation for many restaurant or retail workers. The National Restaurant Association says 30 percent of industry workers don’t have traditional checking accounts…The Consumer Financial Protection Bureau recently issued a warning to employers that federal law requires other pay options besides debit cards.

In Orlando, companies that swear by the payroll cards include Darden Restaurants, Tony Roma’s, and Smokey Bones Bar & Fire Grill. Nationwide, the number of such cards is expected to more than double in five years to 10.8 million, according to business-research company Aite Group.

The cards save employers money and time. But workers who aren’t careful about where they use the cards can rack up fees, which has put payroll cards under scrutiny. New York’s attorney general is investigating more than 40 companies, including Darden, asking for information about fees and seeking proof that workers know they can receive their pay in other ways.

At Darden, which owns chains including Olive Garden and Red Lobster, new employees automatically are set up to receive debit cards, but they can make a phone call or go online to opt out. Now, 48 percent of Darden’s workers use the debit cards, and 50 percent have direct deposit. Only 2 percent receive traditional checks.

Consumer advocates frown on the automatic signup, saying employees should make the choice upfront. Darden said the cards are more convenient than paper checks, which used to be the automatic payment method.

For more:  http://articles.orlandosentinel.com/2013-10-06/business/os-cfb-cover-payroll-cards-20131006_1_debit-cards-payroll-cards-such-cards

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by | June 29, 2013 · 6:00 am

Hospitality Industry Employment Risks: Massachusetts Hotel Manager Charged With Stealing Over $300,000 Over Two Years; Created Fake Employees And Cashed Checks

“…the fake employees would appear on the payroll and receive a paycheck.  Anjanel would then ask another person to cash the checks and that Hotel Employee Theftperson would give all of the money to the defendant…Anjanel would also wire the money to Guatemala, using her own name and also asking others whom she knew to wire the money on her behalf…Over the two year period, Anjanel stole more than $300,000 from the two hotels…”

A Lawrence woman was arraigned Friday on larceny charges for allegedly stealing more than $300,000 from two hotels where she worked as a manager, according to a release from Middlesex District Attorney Marian Ryan.

Authorities allege that in 2010 when Anjanel was working as the manager of the Residence Inn at 1775 Andover Street in Tewksbury, she was responsible for and had access to hotel finances including payroll and petty cash, as well as the authority to make hiring decisions.

According to the release, Anjanel used her responsibilities as manager to add three employees to the hotel’s payroll. These employees were never on the schedule, and never actually worked at the hotel, according to the release.

For more:  http://tewksbury.patch.com/groups/police-and-fire/p/hotel-manager-charged-with-stealing-from-tewksbury-hotel

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by | December 12, 2012 · 7:22 am

Hospitality Industry Theft Risks: Illinois Restaurant Manager Charged With Stealing Over $10,000 In Employee Paycheck Scam; Forged Names On Bogus Paychecks

“…she allegedly used information records of at least four former workers to pull off the scam, which came to light only after one of those former workers took concerns to the restaurant’s owner…created the accounts, employee theft“clocked in” workers to show they worked certain hours and then forged their names on the resulting paychecks…”

The manager of the Jerseyville McDonald’s restaurant was charged this week, accused of theft for allegedly using former workers’ information to create bogus paychecks that she cashed for herself.

The amount of money involved is likely in the tens of thousands of dollars, although Jersey County State’s Attorney Ben Goetten said the case still is being investigated.

“This should be a wake-up call to other business owners out there,” he told The Telegraph.

Officially, the amount of money taken is listed in the charge as between $10,000 and $100,000.

The alleged victim, Lora Dover of Carrollton, said she became alarmed after being told by Medicaid that she was not eligible for her latest disability check because of unreported income from 2012. Turns out, she had not worked at the McDonald’s in 2012.

For more:  http://www.thetelegraph.com/news/local/article_8692a192-43e5-11e2-b4f6-001a4bcf6878.html

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