DETROIT — Ninety-six hotel employees will receive a total of $50,000 in back wages and damages as a result of a recent settlement agreement reached in a wage and overtime pay lawsuit against their employer.
The U.S. Department of Labor (DOL) filed the wage and overtime pay lawsuit against the operator of 70 Midwest hotels. The DOL alleged in its lawsuit the hotel operator violated the Fair Labor Standards Act (FLSA) when it failed to the pay its employees at least minimum wage for all of the hours they worked, including overtime.
Hotel Violations
The DOL filed its lawsuit in February of this year in Michigan federal court. Prior to filing the lawsuit, the DOL’s Wage and Hours division investigated seven hotels in Michigan owned by Hikmat Piromari and Akram Namou, the operators of Grand Hospitality Management Inc. and A&M Hospitality. The owners operate hotels, many of which are well-known hotel brands, in Michigan, Ohio, and Indiana. Based on the DOL’s findings, the hotel operator underpaid its housekeepers and maintenance employees by not paying them at least minimum wage for all of the hours they worked. In determining if the employees are paid minimum wage for all of the hours they worked, investigators look at the hourly rate the employee receives, how the employees’ hours are tracked, and how much overtime, if any, is paid. The hotel operators claim the underpayment was the result of an oversight and, in addition to paying the employees the back wages they are entitled, the hotel operators agreed to stop violating the FLSA.
Settlement Agreements
Typically settlement agreements will address each of the issues and claims in a lawsuit along with additional terms to address underlying causes. Settlements will usually address back pay and damages, attorneys’ costs and fees, and if the employees can bring additional claims against the employer for the same alleged violations in the future. In some cases, particularly when the DOL files the lawsuit, the settlement will also include provisions which require the employer to change their timekeeping, wage, and other management practices that led to the violations. Often the changes, as in this case, include hiring outside individuals to monitor and oversee the employer’s accounting and pay practices for a set period of time and creating a hotline for employees to lodge complaints.
If you have been unable to address concerns about your employer’s pay practices with your employer and you believe your employer is not paying you minimum wage or for all of the hours you work, you may have a wage and overtime pay claim. Our experienced team of overtime pay lawyers can be reached at (855) 754-2795. Or you can complete our Free Unpaid Overtime Case Review form and our knowledgeable legal team will evaluate your claim. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.