Back wages recovered by U.S. Department of Labor

Back wages recovered by U.S. Department of Labor
A White County motel has been ordered to pay $53,055 in back wages to resolve violations of the Fair Labor Standards Act involving overtime and minimum wage requirements.

LITTLE ROCK, AR (KAIT) - The operator of a White County motel has paid $53,055 in back wages to 11 employees after an investigation by the United States Department of Labor Wage and Hour Division involving overtime and minimum wage issues.

According to a media release from the United States Department of Labor, Jai Mata LLC, which operates the MStar Motel in Searcy paid the money to resolve violation of the Fair Labor Standards Act dealing with overtime and minimum wage requirements.

Authorities alleged several violations of the requirements.

“WHD investigators found the employer violated FLSA overtime and minimum wage requirements when it failed to pay employees at least the federal minimum wage of $7.25 per hour for every hour they worked; paid employees flat salaries without regard to the number hours they actually worked, resulting in overtime violations when these employees worked more than 40 hours in a workweek without overtime pay; and made a monthly deduction from employees' pay for employer-provided lodging credit without regard to actual costs of that housing, and required employees to live onsite,” officials said in the release.

Officials also found that Jai Mata LLC failed to keep accurate records of the employees' work hours, violating record keeping requirements of the law, as well as failed to display required FLSA information, the release noted.

A labor department official said the rules are clear and that the agency works to help businesses to understand the law.

“Employers are responsible for paying their employees all the wages they have legally earned,” Division District Director Hanz Grunauer said. “We offer a wide variety of tools to explain their responsibilities, and encourage employers in all industries to contact us with any questions about compliance. Our goal is to prevent violations from occurring.”

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