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Thursday, November 12, 2026Nov 12

Labor department forces Tennessee hotels to pay fines, wages

photo The former Town and Country Inn on East 23rd Street is among 35 hotels in Tennessee being penalized by the U.S. Department of Labor for violating federal wage and hour laws.

A hotel that was the subject of a Chattanooga Times Free Press investigation earlier this year is among 35 hotels in Tennessee being penalized by the U.S. Department of Labor for violating federal wage and hour laws.

Labor officials said that, during a multiyear effort, which included an investigation into Chattanooga’s former Town and Country Inn, they found widespread disregard for minimum wage, overtime and record-keeping provisions in the Fair Labor Standards Act.

In total, state hotels will be fined $14,552 and be forced to pay $173,045 in back wages to 283 employees.

Officials with the department would not say what the fines and back wages would amount to for Town and Country Inn on East 23rd Street. The owners of the property at the time, David and Steven Bernstein, live out of state and sold the property last year.

The building now has a “for lease” sign outside. Calls to the hotel, now called Extend A Suites, were not answered.