March 05–The U.S. Department of Labor said it uncovered the rampant practice of employees being forced to work off the clock and often for less than minimum wage in the local hotel industry.

An ongoing investigation found widespread violations of the Fair Labor Standard Act in cases where staffing agencies often provide the workers. The initiative has looked into operations at more than 30 hotels and motels in Arlington, Dallas, Garland, Grand Prairie, Irving, Plano and Abilene.

Housekeepers, cooks, maintenance workers, front-desk clerks and event managers are among the 639 employees in the Dallas area and in Abilene who received more than $180,000 in back wages following the agency’s inquiry.

“We are taking a hard look at the hotel industry where employment practices, such as subcontracting, franchising and third-party management, can put downward pressure on costs — often at the expense of wages,” said Cynthia Watson, regional administrator for the agency’s Wage and Hour Division in the Southwest, in a prepared statement. “We will continue to use every enforcement tool available to ensure industry-wide compliance with the law.”

Other Fair Labor Standards Act violations included failing to include bonuses and commissions when computing worker’s overtime rates of pay and not keeping accurate records of the hours employees work. Some employees also were illegally misclassified as independent contractors.

S&A Staffing in Dallas was listed as a major violator by the agency. According to the company’s website, it provides temporary workers for banquet service at some of the most exclusive hotels and country clubs in the Metroplex.

Labor department investigators reportedly found that S&A Staffing failed to combine hours when employees worked for more than one client during the work week. That led to working beyond 40 hours a week and failing to pay time and a half for overtime.

S&A Staffing was required to pay $113,795 in overtime back wages to 390 employees.

The Star-Telegram contacted S&A Staffing but officials were not available for to comment.

Max B. Baker, 817-390-7714

Twitter: @MaxBBaker