Michigan resort pays $87K in overtime back wages to 256 employees after US Department of Labor finds overtime violations

BELLAIRE, MI – A U.S. Department of Labor Wage and Hour Division investigation has found that Trinidad Resort & Club LLC, operator of the Shanty Creek Resort in Bellaire, violated the Fair Labor Standards Act’s overtime requirements repeatedly when it paid workers only for the hours they were scheduled, rather than for the total number of hours they actually worked.

The investigation led to the division’s recovery of a total of $87,529 in overtime back wages for 256 workers at the resort. The division determined that Shanty Creek Resort:

• Failed to pay employees for work performed before or after their scheduled shifts.
• Paid servers overtime based upon their direct wages as tipped workers, rather than on the full minimum wage as the law requires.
• Paid one worker a flat salary regardless of the number of hours worked, resulting in a failure to pay overtime in workweeks longer than 40 hours.
• Failed to maintain accurate payroll records by not recording or paying for pre and post-shift work.

In addition, the division found the resort operator also violated child labor requirements when it scheduled no fewer than 11 workers, ages 14- and 15-years-old, to work after 7 p.m.; more than three hours on a school day; and more than 18 hours in a workweek while school was in session. The employer paid a civil money penalty of $7,513 for these violations.

“Employers must pay workers every penny they have legally earned,” said Wage and Hour Division District Director Mary O’Rourke, in Grand Rapids. “If employees work before or after their scheduled shifts, the employer benefits from that work – so they must pay for it. Businesses that employ minors also have an important responsibility to ensure young workers benefit from their work experience and that their employment does not interfere with their education or risk their safety. Any employers or workers with questions should call us to speak confidentially with a Wage and Hour Division representative.”

FLSA establishes both hours and occupational standards for the employment of minors. Children under the age of 18 may not be employed in any occupation the Secretary of Labor has declared to be hazardous. Employers must follow these rules unless a specific exemption applies.

The division offers numerous resources to ensure employers have the tools they need to understand their responsibilities and to comply with federal law, such as online videos, and confidential calls to local Wage and Hour Division offices. For more information on federal child labor provisions, visit http://www.dol.gov/agencies/whd or call the division’s toll-free helpline at 866-4US-WAGE (487-9243) for more information.