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Prepare Now: Hospitality Industry Draws U.S. Labor Department's Focus


Recently U.S. Department of Labor's Wage and Hour Division officials unofficially announced the Department's "Hotel and Motel Resort Pilot Initiative." Although no specific strategy or plan has been set forth for this investigation program, it is scheduled to begin in the agency's next fiscal year, which commences on Oct. 1, 2010. Under this initiative, the Division will target and audit hospitality employers in two areas—compliance with H2B requirements and the Fair Labor Standards Act.

The Wage and Hour Division considers hospitality to be a "high risk" industry for wage and hour violations, identifying several industry characteristics to putting it in this "high risk" category:

While the specific details of the Wage and Hour Division's audit Initiative have not been announced, the Division likely will:

The Division's enforcement priorities focusing on the hospitality industry make it imperative that industry employers focus on prevention and prepare for the government's likely audit. By undertaking the effort now, you can do a thorough analysis and carefully decide what steps best balance your business needs and the interests of risk-reduction.

This article appeared in the September 2010 issue of Lodging Magazine.


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