FARGO, N.D. — A hotel owner in Fargo is facing a $200,000 lawsuit brought by U.S. Department of Labor (DOL) for violations of minimum wage and overtime pay laws under the Fair Labor Standards Act (FLSA), along with the wage laws in Montana and North Dakota. Thirteen hotels, owned by Bharat “Brian” Patel, are affected by this lawsuit. In their lawsuit filed in North Dakota federal court the DOL claims to have found the hotels and their owner to have misclassified its employees as salaried and exempt from overtime pay and minimum wage. Patel has allegedly been investigated more than once, and is well aware of the applicable labor laws.

The Hotel Violations

As a general rule nearly all hotel employees are entitled to overtime. In this case, 192 employees at the 13 hotels were misclassified and the DOL is seeking damages and back wages for a two-year period prior to the investigation. The DOL’s claim alleges Patel paid his hourly employees straight time, or their regular rate of pay, even when they worked more than 40 hours in a work week. This meant they were not paid the required time and a half for the overtime they worked. It also means that some employees essentially earned less than minimum wage due to the pay practices. Patel is alleged to owe close to $100,000 in damages and $100,000 in back wages. This amount is intended to cover front desk clerks, housekeeping staff, and other employees at his hotels.

Overtime Lawsuits

There are a few possible avenues for overtime pay lawsuits. The start of all overtime pay lawsuits is the complaint filed with either the state’s Labor Department or the DOL. A claim filed with one Department will be sent to the other so both Departments are aware of the claim. One of the Departments then investigates the complaint. The Department will allow the parties to attempt to negotiate a settlement prior to filing a lawsuit. If no settlement can be reached at that point, the Department will continue its investigation and either bring a lawsuit on behalf of the complaining employees or provide the employees with a “Right to Sue” letter, which allows the employees to file their own lawsuit. Generally, if the Department finds sufficient evidence of violations and those violations are fairly widespread or affect more than one employee, it will bring a claim. However, in many cases the Department will choose to let the employee pursue the claim on their own.

If you work more than 40 hours a week and you are a nonexempt employee, you are likely entitled to overtime wages. If you employer denies those wages or denies you the back wages you have been awarded, call our top-rated team of overtime pay lawyers today at (855) 754-2795 to discuss your options. Or complete the Free Unpaid Overtime Case Review form and our experienced legal team will evaluate your situation. 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.