A federal investigation has found that Michigan resort, Shanty Creek in Bellaire, violated labor laws. The investigation alleges Shanty Creek failed to pay workers for hours they worked and illegally scheduled workers under 16 years-old.

The U.S. Department of Labor announced that Shanty Creek would be required to pay $87,529 in overtime back wages to over 250 workers at the resort. The investigation found that they not only failed to maintain accurate payroll records but paid workers for hours they were scheduled, not hours worked.

The resort’s child labor law violation occurred when it scheduled at least 11 minors, ages 14 and 15 years old, to work after 7 p.m.; which is more than three hours on a school day, and 18 hours in a workweek while school was in session. Shanty Creek has paid the civil penalty of over $7,500 for these violations.

“Employers must pay workers every penny they have legally earned… If employees work before or after their scheduled shifts, the employer benefits from that work – so they must pay for it. Businesses that employ minors must also have an important responsibility to ensure young workers benefit from their work experience and that their employment does not interfere with their education or risk their safety.”

Mary O’Rourke, District Director – Department of Labor Wage and Hour Division

While we are glad to see an issue like this be quickly intercepted and squashed by the DOL, we find it especially troubling to hear of businesses today be so content with violating labor agreements, including child labor laws.