Back Wages For Searcy Motel Employees

Mstar Motel

After an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD), Jai Mata LLC – operator of the MStar Motel in Searcy, Arkansas – has paid $53,055 in back wages to 11 employees to resolve violations of the Fair Labor Standards Act (FLSA) overtime and minimum wage requirements.

WHD investigators found the employer violated FLSA overtime and minimum wage requirements when it: failed to pay employees at least the federal minimum wage of $7.25 per hour for every hour they worked; paid employees flat salaries without regard to the number hours they actually worked, resulting in overtime violations when these employees worked more than 40 hours in a workweek without overtime pay; and made a monthly deduction from employees’ pay for employer-provided lodging credit without regard to actual costs of that housing, and required employees to live onsite.

Investigators found the employer failed to keep accurate records of the employees’ work hours, violating record keeping requirements of the FLSA. The motel also failed to display required FLSA information.    MORE

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