An Indian-American hotelier has been sued by the US Department of Labour for not paying rightful wages running into USD 200,000 to 192 employees.
According to the law suit filed by Department of Labour and US Attorney Office for the District of North Dakota, Bharat Patel, who owns 13 hotels in North Dakota and Montana, violated the Fair Labour Standards Act by incorrectly classifying some workers as exempt salaried employees.
An investigation by the Wage and Hour Division found approximately USD 100,000 in back wages and an equal amount in liquidated damages owed to front-desk clerks, housekeeping staff and other hotel employees, the Department of Labour said in a statement.
This practice resulted in some employees not receiving minimum wage for all hours worked and not being paid any overtime, it said.
Hourly employees received straight-time pay for hours worked over 40 in a workweek and were not paid the legally required time and one-half.
Additional overtime violations occurred when Patel failed to combine hours for employees who worked at two locations in the same workweek.
The company also failed to maintain accurate records of all hours worked and pay rates, the law suit alleges.
Patel owned hotels in Fargo include two Econo Lodge's, Quality Inn, Super 8 and Quality Suites.
He also has hotels in Jamestown, Dickinson, Valley City, Wahpeton and Glendive, Montana.
