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Norwegian to Pay $526,602 in Back Wages to Hawaii Ship Workers

By Theresa Norton Masek
February 16, 2012 10:14 PM

Norwegian Cruise Line has agreed to pay $526,602 in back wages to 2,059 employees for “systemic violations” of minimum wage, overtime and record-keeping provisions for employees on the U.S.-flagged Pride of America cruise ship in Hawaii.

U.S. Department of Labor’s Wage and Hour Division in Honolulu determined that Norwegian paid employees 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 when working beyond 40 hours a week.

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.

“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. 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 ran from July 2009 through November 2011, Norwegian agreed to develop and immediately implement a compliance plan. The company employs more than 900 workers on the Pride of America at any given time.

For its part, the cruise company issued this statement: “Norwegian Cruise Line fully cooperated with the U.S. Department of Labor in their investigation. Pride of America, the only U.S.-flagged cruise ship with approximately 940 crew members, is fully compliant with all U.S. labor laws.”

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