Melrose Hotel found in violation of fair wages

Published: Aug. 14, 2019 at 10:57 PM MDT
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Two former employees of the Historic Melrose Hotel were allegedly not being paid fairly. It has local residents surprised.

“Speaks to the need to keep records,” says GJ resident, Matt Spinelli.

Back in May, The Colorado Department of Labor and Employment had received a complaint from James and Rebecca Hudson that the Melrose Hotel was in violation of the state minimum wage and hour laws. According to the complaint they were only paid $10.20 an hour and also did not receive adequate overtime pay.

“It also speaks to the relatively low wages that we have in the service industry,” says Spinelli.

According to the complaint filed, James Hudson alleged he was owed over $6,000 in wages. Rebecca Hudson was owed more than $5,500.

Also according to the complaint,the Hudson’s apparently rented a place to live at the Melrose Hotel. The hotel agreed to pay the Hudson’s on a salary basis with some of the earnings being put towards rent. Labor and Employment had found that there was no written agreement about wage deductions for the rent at the hotel, which is against Colorado state law.

The document also shows that Melrose did not keep accurate records of the hours that the Hudson's had worked, while the Hudson's had kept their own recorded hours for personal reference. The hotel has since disputed these recorded hours that the Hudson's had provided, but they were not able to give proof that they were false.

The investigation concluded that Melrose owed the Hudson's nearly $12,000 in wages and penalties. Melrose was also ordered to pay close to $4,000 in penalties to the Department of Labor and Employment, as a result of the dual claims. It stirs conversation about keeping records on file.

“Sounds like there’s a lot of he said, she said about this. And without adequate records, it’s kind of hard to trace that back and to actually figure out who’s responsible for what and how to sort it out,” says Spinelli.

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