Norwegian Cruise Line has agreed to pay $526,602 in back wages to 2,059 employees following an investigation by the U.S. Department of Labor’s Wage and Hour Division.
The investigation discovered "systemic violations" of the Fair Labor Standards Act’s minimum wage, overtime and record-keeping provisions for employees working on the U.S.-flagged Pride of America in Hawaii.
In a statement, the labor department said, “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. Most should have received pay at time and one-half their regular rates for all hours in excess of 40. This single violation accounted for the largest share of the back wage payments.”
The investigation also determined that because the line took meal and lodging credits, some employees were paid less than the federal minimum wage of $7.25 per hour.
Additionally, said the department, the cruise line failed to record and pay housekeeping staff for time spent cleaning cabins between cruises. Further, it added, employees often began work prior to their scheduled shifts, yet these hours of work were neither recorded nor compensated.
“Employees in many jobs on U.S.-flagged vessels are entitled to the federal minimum wage and overtime protections under U.S. law,” said Terence Trotter, director of the Wage and Hour Division’s Honolulu District Office. “We appreciate that this employer came into compliance once the issues were identified.”
The investigation covered the period from July 2009 through November 2011, and Norwegian has agreed to develop and immediately implement a compliance plan, said the labor department.
Norwegian Cruise Line said that it “fully cooperated with the U.S. Department of Labor in their investigation [and is] fully compliant with all U.S. labor laws.”
Norwegian employs more than 900 workers on the 2,138-passenger Pride of America.
Follow Donna Tunney on Twitter @dttravelweekly.