Norwegian Cruise Line to pay $500k for violating wage rules

Labor Department found company failed to properly pay 2,059 employees over three years

’Tis the season for troubles while luxuriously relaxing and overeating on the high seas. While the rest of the world is still aghast over Carnival Corp.’s Costa Concordia shipwreck off the coast of Italy, the U.S. Department of Labor (DOL) is cracking down on another cruise company a little closer to home.

The DOL’s Wage and Hour Division yesterday announced that Norwegian Cruise Line has agreed to pay $526,602 in back wages to employees on its Pride of America cruise liner in Hawaii. The DOL determined after an investigation, which lasted from July 2009 to November 2011, that Norwegian systemically violated the Fair Labor Standards Act’s minimum wage, overtime and record-keeping provisions in regard to the ship’s 2,059 employees.

Norwegian neglected to record and pay housekeeping staff for time spent cleaning passenger cabins between cruises, as well as compensate workers who started before the scheduled shifts began. The cruise line also failed to pay overtime to crew who worked during mandatory weekly emergency drills.

"The investigation determined that Norwegian Cruise Lines paid employees straight time for mandatory weekly emergency drills, regardless of the number of hours they had worked in the week," the DOL said in a release. "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 DOL added that employees in many jobs on U.S.-flagged vessels that travel in U.S. waters are entitled to federal minimum wage and overtime protections.

Norwegian also has agreed to immediately develop and implement a compliance plan to correct the problem.

For more, read the Honolulu Star Advertiser.

Comments

InsideScoop Daily eNewsletter

InsideScoop delivers the latest-breaking news affecting in-house counsel. Get the latest business trends, current corporate litigation, labor developments, technology initiatives and more — FREE. Sign up now!

You have been subscribed! You will receive a confirmation email soon.

See the entire list of InsideCounsel eNewsletters.

Resource Library


7 Simple Strategies for Improving Legal Fee Budgeting Certainty

Understanding the legal fee budgeting paradigm and following seven simple strategies will help you control...

Complimentary White Paper: Best Practices for Meeting Critical eDiscovery Challenges

Packed with practical advice, this white paper discusses best practices for meeting eDiscovery challenges across...

Complimentary White Paper "Key Considerations for Collection Methodologies and Resources"

This white paper addresses the need for companies to reevaluate their current collection policies in...

Moving Matters In-House: How Technology Enables Legal In-Sourcing

Strategically shifting more matters to in-house counsel has proven to be an effective strategy to...

5 Ways to Promote Responsible Content Sharing

Find out five ways that organizations can promote responsible sharing of content among employees by...

Reducing the Costs of eDiscovery from Collection to Court!

Predictive coding is only one of many ways organizations can make eDiscovery faster, cheaper and...

Discovery Shifts to the Cloud

Adoption of Cloud computing continues to gain momentum. How can IT and Legal Teams avoid...

Lower Your Total Cost of Ownership

With the deployment of Proofpoint Enterprise Archive, organizations have realized significant cost savings in automating...

Health and Safety Risks of Counterfeits in the Global Supply...

This whitepaper underscores the prevalence of counterfeits within global supply chains across a number of...

Get the facts you need to Help Implement Sound Legal...

This whitepaper will examine the cases that are setting precedents. Download "Legal Hold and Self-Collection:...

View All »

Advertisement. Closing in 15 seconds.