Norwegian Cruise Lines has agreed to pay $526,602 in back wages to 2,059 employees following an investigation by the U.S. Department of Labor.
The investigation determined that NCL paid employees of the Pride of America cruise ship straight time for mandatory weekly emergency drills, regardless of the number of hours they had worked in the week. Most of the employees typically worked nearly 60 hours per week and should have received pay at time and one-half their regular rates for all hours in excess of 40, including during the emergency drills conducted each Saturday. This single violation accounted for the largest share of the back wage payments owed to the employees.
The investigation also determined that because the employer took large meal and lodging credits, some employees were paid less than the federal minimum wage of $7.25 per hour. Additionally, the employer failed to record and pay housekeeping staff for time spent cleaning cabins between cruises. Further, employees often began work prior to their scheduled shifts, yet these hours of work were neither recorded nor compensated.
“We appreciate that this employer came into compliance once the issues were identified,” said Terence Trotter, director of the Wage and Hour Division’s Honolulu District Office. “We hope that this case sends a clear message to similar employers about taking steps to ensure they are in compliance with all applicable federal labor laws.”
Following the investigation, which covered the period from July 2009 through November 2011, Norwegian Cruise Lines agreed to develop and immediately implement a compliance plan to remedy its pay practices.
The investigation determined that NCL paid employees of the Pride of America cruise ship straight time for mandatory weekly emergency drills, regardless of the number of hours they had worked in the week. Most of the employees typically worked nearly 60 hours per week and should have received pay at time and one-half their regular rates for all hours in excess of 40, including during the emergency drills conducted each Saturday. This single violation accounted for the largest share of the back wage payments owed to the employees.
The investigation also determined that because the employer took large meal and lodging credits, some employees were paid less than the federal minimum wage of $7.25 per hour. Additionally, the employer failed to record and pay housekeeping staff for time spent cleaning cabins between cruises. Further, employees often began work prior to their scheduled shifts, yet these hours of work were neither recorded nor compensated.
“We appreciate that this employer came into compliance once the issues were identified,” said Terence Trotter, director of the Wage and Hour Division’s Honolulu District Office. “We hope that this case sends a clear message to similar employers about taking steps to ensure they are in compliance with all applicable federal labor laws.”
Following the investigation, which covered the period from July 2009 through November 2011, Norwegian Cruise Lines agreed to develop and immediately implement a compliance plan to remedy its pay practices.
See the original article at: KHON2 Local News
