The Crown and Anchor, Inc. and Crowne Pointe, Inc., both located in Provincetown,
Mass., have agreed to pay 69 employees over $65,000 in back wages following a
U.S. Labor Department investigation of alleged federal wage and hour law violations.
The department also assessed the companies a total of $25,190 in civil penalties
for the alleged violations of the Fair Labor Standards Act (FLSA).
"We are delighted that these workers will receive their due wages as a
result of our enforcement efforts in this case," says Corey Surett, Boston
District Director for the Labor Department's Wage and Hour Division. "Most
of the 69 employees covered by our investigation were non-U.S. citizens brought
into this country by these employers for seasonal work under the H-2B visa program.
And it should be noted that both of these establishments had interlocking ownership
and management; and the H-2B employees worked at both locations as needed."
Surett noted that the investigation conducted by his office covered the period
between April 1, 2001 and August 31, 2002. Surett said that the investigation
disclosed that employees who worked over 40 hours per week were paid straight
time for all hours worked. Investigators found that one employee, claimed by
the employers to be exempt from coverage under the law, was determined to be
covered by the law and entitled to overtime pay.
Consequently, the Crown and Anchor Hotel will pay 52 employees $37,310 in back
wages, and has been assessed $18,190 in civil money penalties for the overtime
violations. The Crowne Pointe Hotel will pay $28,000 in back wages to 17 employees
and has been assessed $7,000 in civil money penalties.
The FLSA requires that employers pay covered workers at least the applicable
federal minimum wage and time-and-one-half for hours worked over 40 in a single