Hilton Reservations Worldwide LLC has agreed to pay over $700,000 in minimum and overtime back wages. There are 2,645 current and former customer service employees in Florida, Illinois, Pennsylvania, and Texas that are affected.
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An investigation by officials from the Wage and Hour Division's (WHD) Dallas District Office found that the company violated the FLSA by failing to pay employees for work performed prior to clocking in at the start of their scheduled shifts, such as booting up a computer, opening programs required to assist customers and reading pertinent emails. Employees were not paid minimum wage for this time.
In addition, since the time was not included as hours worked, employees did not receive the correct overtime rate of pay.
Finally, the investigators found the employer failed to maintain required records.
"We look at big companies with a multitude of resources, such as Hilton Reservations Worldwide, as businesses that can model what it means to be a good employer. For that reason, we are pleased that the company has made the necessary changes to comply with the law and pay its workers all the wages they have earned," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest.
There are 4 locations affected by the payment agreement:
- Carrollton, TX: $456,343 is due to 1,443 workers
- Tampa, FL: $213,314 is due to 1,012 workers
- Hazelton, PA: $30,370 is due to 130 workers
- Streator, IL: $15,480 is due to 60 workers
Hilton Reservations Worldwide, doing business as Hilton Reservations and Customer Care in Carrollton, provides telephone reservation services for the Hilton Worldwide chain of hotels and resorts. The company has agreed to fully comply with the FLSA in the future. Payment of the back wages is ongoing.