The Labor Department investigators determined that the business routinely changed payroll records to avoid paying employees overtime, a violation of the Fair Labor Standards Act (FLSA), ordering the employer to pay more than $400,000. Specifically, this was derived from $372,183 in back wages owed to 275 employees, and also $41,368 being assessed in penalties for repeat violations to the FLSA.
The investigation determined that the management of the Florida company failed to record and pay accurately for all the hours that employees worked. Specifically, the employer altered time records to record fewer hours in the payroll than employees had actually worked. Managers requested that employees sign documents authorizing them to edit their clock-in and clock-out times, and to modify their timecards to reflect that employees had not worked through their lunch breaks when they had. Michel v. Vistana Management, Inc., Case # 6:17-cv-02085.
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What happens if a Florida business changes payroll records to record fewer hours than employees actually worked?
Asked another way, can a Florida company alter payroll records to avoid paying overtime?
An Orlando employer found out the hard way that this violates federal law. Specifically, the Fair Labor Standards Act (FLSA). Recently, an Orlando-based resort chain received a visit from the U.S. Department of Labor’s (DOL) Wage and Hour investigators. The Florida-based DOL investigation came down hard on Orlando-based resort Vistana Management Inc., which was doing business as Sheraton Vistana Resort.