Midwest Lodging LLC, a Cincinnati-based hotel management company, has agreed to pay $47,654 in unpaid overtime and other back wages to 67 workers who were misclassified as independent contractors, the U.S. Department of Labor’s Wage and Hour Division (WHD) recently announced.
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Get Your Report Now!The workers were temporary housekeepers, laundry workers, and front desk clerks contracted by Midwest Lodging through three staffing agencies: Luxor Services, Inc., in Mason; Bahor Inc., in Cincinnati; and BA Cobalt Cleaning, Inc., in Cincinnati.
According to the WHD, employees were not paid overtime premiums for hours worked beyond 40 in a workweek and were not paid for short breaks as required by the Fair Labor Standards Act (FLSA). In addition, some workers in housekeeping and guest services were paid as little as $7 per hour.
Investigators also found that the staffing companies failed to keep accurate records of hours worked, employees’ names, and contact information. In addition, Midwest Lodging failed to pay overtime to workers directly employed by the company at its hotels, the WHD charged.
The WHD determined that the affected workers were jointly employed by Midwest Lodging and the temporary staffing agencies. As a result, they are jointly responsible for compliance with the FLSA.
“Temporary employment agencies serve valuable and legitimate business needs in today’s economy, but employers may not use such services to escape their responsibility to pay their workers the minimum wage and overtime pay they are entitled to under the law,” said George Victory, WHD’s district director in Columbus. “As demonstrated in this case, we are using all enforcement tools available to make whole the affected workers and ensure compliance with the FLSA.”