Occasionally an industry catches the attention of the Wage and Hour Division (WHD) of the Department of Labor when a trend of widespread violations is exposed. Usually those violations occur when employers take advantage of low‐wage workers who aren’t sure of their rights and are hesitant to complain for fear of retaliation. Cynthia Watson, regional administrator for the WHD, explains that “We see a disturbing violation rate among hotel and motel employers and we are doing something about it . . . Low wage, vulnerable employees are often hesitant to speak up when subjected to violations. The department is committed to ensuring that an honest day’s work results in an honest day’s pay, and that an employer who plays by the rules isn’t at a disadvantage over one who chooses to skirt the law.” 

Housekeepers seem to be at the highest risk of not seeing the pay they earn. Common employer practices include the following:

• Failing to pay workers for time spent working before and after scheduled shifts. For example, housekeepers may be required to arrive early to prepare their carts and stay late if they fail to finish cleaning the required number of rooms. Employees are often not allowed to log the extra time. 

• Employers changed employee time records, removing time spent before and after shifts. 

• Housekeepers were paid on a flat rate per room cleaned, resulting in an hourly rate under the minimum wage. Those working over 40 hours in a week did not have the rate adjusted to reflect the required one‐and‐a‐half the regular rate of pay. 

• Workers provided by staffing agencies were improperly classified as independent contractors. 

• Failing to maintain accurate time and payroll records was one of the most frequent violations.

In addition to requiring employers to pay back wages, the Department of Labor may require employers to prevent future violations by providing FLSA training to managers, requiring a third party to make sure employees are properly classified, and adopting procedures to accurately track and compensate employees for all work performed.

Questions: 

1. Under what circumstances would hotel employees be exempt from minimum wage and overtime requirements?

2. A few hotels encourage guests to provide tips for housekeeping staff. How would that affect minimum wage requirements?

3. What external factors affect the rate of pay for low‐skilled workers like housekeeping staff ? 

4. Does job evaluation justify the low wages paid to housekeeping staff ?

5. Research: What is the current Federal Minimum Wage? Is it different in the city or state in which you live? What jobs in your area earn the minimum wage? What sources did you use to find your answers?