Probe Reveals Fair Restroom Attendants Unpaid
Posted on Sunday, 24 of August , 2008 at 12:08 pm
ALBANY—A recent Department of Labor investigation of local fairs across the state, including the Washington County and Schaghticoke Fairs, has revealed serious labor law violations involving restroom attendants.
Portlock Maintenance Systems, a Pennsylvania-based company that had contracts with fairs in Western New York, the Hudson Valley and Capital Region, was found to be employing restroom attendants and paying them no wages at all. Instead, the employees were paid only tips, and the company also required these workers to give back up to 50 percent of the tips they earned, both unlawful practices.
As a result of the investigation, three fairs have taken the attendants in-house as employees who will be paid minimum wage. The Department of Labor is working to recover underpayments and lost tips for all affected workers.
In addition, the investigation revealed that the company provides restroom attendants for fairs in other states, including Connecticut and New Jersey. This week, DoL reached out to its counterparts in these states to alert them to the violations.
“Many restroom attendants at local fairs work in hot, uncomfortable conditions in the dead of summer, and it is absolutely mind boggling to me that a company would have the audacity to avoid paying these workers at least a minimum wage,” said state labor commissioner M. Patricia Smith.
“Worse yet, this company saw nothing wrong with taking half of these tips back from the workers. Here in New York this way of doing business is over for Portlock Maintenance Systems.”
DoL’s investigation of Portlock Maintenance Systems began at the Erie County Fair as part of a series of targeted summer investigations. There, it was discovered that an agreement was in place between the Erie County Agricultural Society and Portlock Maintenance Systems that explicitly stated “these attendants will work for tips.”
Interviews revealed that attendants were paid no wages, and they had to hand over half of their tips to Portlock. As a result of the findings in Erie County, DoL contacted the company and the Erie County Fair to inform them of the illegality of this arrangement.
The agency also looked into other fairs working with the company, and found that at the Altamont Fair, similar infractions were occurring. In both cases, DoL immediately intervened on behalf of the restroom attendants to ensure that the violations would cease.
DoL then contacted officials for the Washington County Fair, the Putnam County Fair, and the Schaghticoke Fair. These fairs also had contracts with Portlock but were not yet fully underway. Each of these fairs informed the Department that in light of the current investigation, they had already taken steps to correct the situation by bringing these attendants in house as employees.
DoL is currently in the process of determining the amount owed to all workers affected by this investigation. In addition, the agency is working to acquire all information on attendants who have worked in New York State for Portlock Maintenance Systems since Jan. 1, 2003 in an effort to help them obtain lost wages.
The State Fair, which opened this week in Syracuse, does not have a contract with Portlock and uses in-house employees as bathroom attendants.
New York State’s minimum wage is $7.15 per hour, and employers are required to pay overtime for weekly hours past 40 at 1½ times the employee’s regular pay rate. In certain, limited cases, employers are permitted to pay a lower, “tipped” rate to employees who receive tips. However, employers must pay the appropriate wage to tipped employees and may not expect them to work for tips only. In addition, employers may not demand or accept any portion of employees’ tips.
The State Labor Department encourages employers and workers to contact the department about wage and hour issues. Investigators will answer any questions regarding compliance with New York’s labor laws. Information is also available on the department’s web site – www.labor.ny.gov; or by phone at 1-800-447-3992. 8-24-08
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Category: Business, Government, Labor, New York State, Recreation
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