- Office of Attorney General Maura Healey
- The Attorney General's Fair Labor Division
Boston — A Cohasset inn has been cited more than $20,000 in restitution and penalties for allegedly intentionally withholding employee wages and for insufficient recordkeeping, Attorney General Maura Healey announced today.
Cohasset Sarro, Inc. d/b/a Red Lion Inn, president Heinrich Lutjens and treasurer Gerd Ordelheide were issued four citations totaling $22,837 in restitution and penalties for Failure to Pay Wages in a Timely Manner, Failure to Maintain True and Accurate Records, Failure to Furnish a Suitable Pay Stub and Failure to Pay State (Service Rate) Minimum Wage.
Red Lion Inn is a high end hotel and banquet facility located in Cohasset. The AG’s Office began an investigation into the facility after receiving complaints from several employees alleging tips were misallocated, last paychecks for two employees were short and that the company pay records were incomplete and confusing.
The AG’s investigation revealed the employer allegedly failed to keep accurate timekeeping records and inaccurately reported tip amounts on payroll records. Based on the limited information supplied, the AG’s Office was able to determine that two employees were not paid in full in their last paychecks and that one employee was not paid the correct service rate. The company failed to come into compliance even when given multiple opportunities to do so.
AG Healey’s Fair Labor Division is responsible for enforcing the laws regulating the payment of wages, including prevailing wage, minimum wage and overtime laws.
The AG’s Fair Labor Division regularly receives complaints about wage and hour violations at restaurants. As a result of the high complaint volume, the Division has focused enforcement in this area and has also increased outreach and compliance efforts.
In September, the AG’s Office issued its second annual Labor Day Report, which showed that the restaurant industry continues to have the one of the highest percentages of violations cited. In fiscal year 2017, the office issued 136 citations against 82 unique employers in the restaurant industry, resulting in nearly $900,000 in assessed restitution and $450,000 in penalties.
Workers who believe that their rights have been violated in their workplace are encouraged to file a complaint at www.mass.gov/ago/fairlabor. For information about the state’s wage and hour laws, workers may call the Office’s Fair Labor Hotline at (617) 727-3465 or go to the Attorney General’s new Workplace Rights website www.mass.gov/ago/fairlabor for materials in multiple languages.
This matter is being handled by Assistant Attorney General Amy Goyer and was investigated by Investigator Christina Proietti, both of Attorney General Healey’s Fair Labor Division.