U.S. Department of Labor Investigation Results in Two Anaheim Hotels Paying $59,142 in Back Wages and Damages to 87 Employees

ANAHEIM, CA – Two hotels in Anaheim, California, have paid $59,142 in back wages and liquidated damages to 87 employees after a U.S. Department of Labor Wage and Hour Division (WHD) investigation found overtime and recordkeeping violations of the Fair Labor Standards Act (FLSA).

WHD investigators found that New Century Enterprises LLC – doing business as Hotel Indigo Anaheim – and Union Investments USA LLC – doing business as Ramada Plaza Anaheim – failed to pay employees overtime for hours worked beyond 40 hours per week during some pay periods. Investigators also found the hotels failed to pay housekeepers for work they performed off-the-clock. The investigation found these employees punched out at the end of their scheduled shifts, but returned to work to complete unfinished tasks such as cleaning remaining guest rooms, stocking their cleaning carts, and emptying their trash bins. This practice resulted in additional overtime violations. Investigators also cited the hotels for failing to maintain accurate payroll records.

“These two investigations help ensure that workers receive their full earnings, and that employers compete on a fair-and-level playing field,” said Wage and Hour Division District Director Rodolfo Cortez, in San Diego. “Employers must pay employees for all hours that they work, and in compliance with the law. We encourage all employers to make use of the many tools our agency offers to explain their responsibilities, and to help them avoid violations.”

These two hotels operated under the same management and payroll services.

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the Division’s toll-free helpline at 866-4US-WAGE(487-9243). Employers who discover overtime or minimum wage violations may self-report and resolve those violations without litigation through the PAID program. Information is also available at www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.