U.S. Department of Labor Investigation Results in Tennessee Motel Company Paying $58,894 in Back Wages

NASHVILLE, TN – After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Om Shree Ganesha LLC – operating as the Scottish Inns in Nashville, Tennessee – will pay $58,894 in back wages to four employees for violations of the minimum wage, overtime, and recordkeeping requirements of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer made agreements with homeless individuals to provide them with rooms at the hotel in exchange for working at the front desk without pay. This practice resulted in minimum wage violations when the maximum lodging credit allowed for those rooms totaled less than the required minimum wage of $7.25 per hour. This practice also resulted in overtime violations when these employees worked more than 40 hours in a workweek yet, because they worked for housing only, were not paid overtime. The employer also failed to maintain accurate records of the hours employees worked.

“The U.S. Department of Labor is committed to ensuring that employees receive the wages they have legally earned for all the hours they have worked,” said Nettie Lewis, Wage and Hour Division District Director in Nashville. “The resolution of this case demonstrates our commitment to those workers, and to leveling the playing field for employers who play by the rules. Other workers in similar situations should reach out to our agency.”

For more information about the FLSA and other laws enforced by the Wage and Hour Division, contact the 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 https://www.dol.gov/whd.