U.S. Department of Labor Investigation Results in Federal Court Ordering Quality Inn and Suites to Pay Back Wages, Damages, and Penalties

LAFAYETTE, IN – After an investigation by the U.S. Department of Labor's Wage and Hour Division (WHD), the U.S. District Court for the Northern District of Indiana has issued a default judgment requiring the operators of the Quality Inn and Suites franchise in Lafayette, Indiana, to pay $16,660 in back wages and liquidated damages to 34 employees. The court judgment came after operators Gursahib S. Sekhon and Mehar Hotels Group of Indiana LLC failed to respond to the complaint or appear in U.S. District Court as ordered. The court also permanently enjoined the defendants from future violations of the Fair Labor Standards Act (FLSA).

WHD investigators found the employer violated the FLSA's overtime provisions. Specifically, the employer paid employees straight time rates for all the hours that they worked, paying for any hours worked beyond 40 per week in cash. The law requires overtime to be paid at one and one-half times workers' regular rates of pay. The Division also assessed $16,362 in civil money penalties for the willful nature of the violation.

"Employers who fail to accurately pay their employees will be held accountable," said Wage and Hour District Director Patricia Lewis in Indianapolis. "The U.S. Department of Labor's Wage and Hour Division is committed to ensuring no one is paid less than what he or she has legally earned."

For more information about wage laws enforced by WHD, 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 https://www.dol.gov/whd including a search tool to use if you think you may be owed back wages collected by WHD.

Acosta v. Gursahib S. Sekhon. Mehar Hotels Group of Indiana LLC

Case No. 4:17-cv-73 JVB