Casino/Hotel Ordered to Pay $191K in Overtime Penalties

A San Francisco administrative law judge has affirmed the U.S. Labor Department’s assessment that the Tinian Dynasty Hotel and Casino, based out of the Commonwealth of the Northern Mariana Islands withheld overtime earnings for hundreds of its employees.

The ruling came after the U.S. Department of Labor’s investigation into the pay practices of the Hotel and Casino, which uncovered that the employer withheld overtime earnings from 348 employees by failing to pay these workers over four bi-weekly pay periods, and that the violations were both repeat and willful, subjecting Tinian to civil money penalties. The judge granted a motion for a summary decision on May 18, 2012, requiring that Tinian and its president pay $191,400 in penalties. The back wages were subsequently paid in full.

Federal and state laws may differ on how employers are to compensate employee for the time that they work. Federal law requires employers to pay non-exempt employees one and one-half times the employee’s regular rate of pay for all hours an employee works in excess of 40 hours in a workweek. An employee is entitled to be paid the legal overtime pay rate even if he or she agrees to work for a lower rate.

California law requires employers to pay non-exempt employees one and one-half times the employee’s regular rate of pay for all hours an employee works in excess of 8 hours up to 12 hours in a workday, all hours in excess of 40 hours in a workweek, or any hours up to 8 hours on a seventh consecutive day of work in a workweek. Federal law sets the minimum standards for an employer, but state laws may create higher standards. Numerous exceptions exist which alter an employer’s duties for payment of wages. To navigate the complex statutes regarding payment of wages, an employee needs to speak to an experienced attorney who is familiar with the law in this area.

If you believe that your employer has failed to follow the law in payment of your wages, contact Khorrami, LLP for a confidential consultation.