Hotel cheated employees on pay in South Carolina, feds say. Now it’s paying them back
A hotel in Charleston’s historic district cheated employees out of overtime pay and paid work breaks, according to the U.S. Department of Labor.
The Holiday Inn in Charleston, South Carolina, is paying more than $58,000 for back wages and damages to 55 employees, federal officials said.
Investigators found that Tara of Charleston LLC, which owns the hotel, paid workers “straight time” even if they worked more than 40 hours a week, the DOL said. The company also did not calculate overtime rates correctly for workers, the department said.
The company’s pay practices did not follow the Fair Labor Standards Act, which sets federal law for practices such as overtime pay and minimum wage.
“The employer also failed to pay employees for time they spent in short rest breaks, which is required by law, and failed to pay the correct overtime rate to tipped employees,” the department said in a news release.
“This investigation serves as a reminder to other hotel employers to pay careful attention to Fair Labor Standards Act requirements concerning tips, breaks and overtime,” DOL’s Jamie Benefiel said.
“The U.S. Department of Labor makes many resources available to employers and employees to make them aware of rights and responsibilities. We encourage hotel employers and employees to contact us directly if they have questions about how employees must be paid.”
