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Employees at staffing agencies owed overtime

Staffing companies act as recruiting centers for businesses to screen and hire new employees. All types of businesses use staffing companies and most agencies require their employees to do typical office work.

Case in Point

A staffing company that provides workers for major hotels in the Dallas-Fort Worth area was under an investigation by the U.S. Department of Labor recently. An initial complaint to the labor department prompted the investigation and VIP Hotel Services will pay $242,000 in back wages to 541 current and former housekeepers and office employees.

The DOL found several FLSA violations by VIP Hotel Services of Dallas, including:

• the company short-changed workers for overtime work,
• paid office workers their regular rate of pay for all hours worked,
• paid housekeepers a rate of $3.50 per room,
• misclassified housekeepers as independent contractors, and
• failed to maintain time and payroll records as required by the FLSA.

Many employees who work in an office may be told by their employer that they are not eligible for overtime because of the administrative exemption or may misclassify them as independent contractors. This is simply not true - your job duties determine your overtime eligibility, not your title. Order our free book to learn more about the laws that apply to you.

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