U.S. Department of Labor Recovers Back Wages For Arkansas Motel Employees

LITTLE ROCK, AR – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), Jai Mata LLC – operator of the MStar Motel in Searcy, Arkansas – has paid $53,055 in back wages to 11 employees to resolve violations of the Fair Labor Standards Act (FLSA) overtime and minimum wage 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.

Investigators found the employer failed to keep accurate records of the employees' work hours, violating record keeping requirements of the FLSA. The motel also failed to display required FLSA information.

"Employers are responsible for paying their employees all the wages they have legally earned," said Wage and Hour Division District Director Hanz Grünauer, in Little Rock. "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."

The Department provides numerous resources and tools to help employers understand their responsibilities and comply with federal law, such as online videos, confidential calls, or in-person visits to local WHD offices.

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