Contract analysis

I. Executive Summary This memorandum analyzes whether the pre-shift and post-shift activities alleged in the demand letter of Garza, Linden & Okafor LLP ("GLO"), dated January 14, 2026, on behalf of Daniela M. Serrano, constitute compensable work under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. (the "FLSA"). This analysis is one component of the broader wage-and-hour compliance audit that Calderwood & Hark

1. Donning and doffing required uniforms. Employees allege they are required to change into VHG-branded uniforms in on-site locker rooms before clocking in and to change out of their uniforms after clocking out, consuming an estimated five to eight (5–8) minutes per shift.

2. Booting up computer systems and logging into point-of-sale and property-management software. Front-desk associates, concierge staff, and certain other roles allege they must power on computer terminals and log into multiple software applications before they can begin serving guests, a process estimated to take five to ten (5–10) minutes per shift.

3. Participating in shift-handover briefings. Incoming and outgoing shift employees allege they are required to participate in mandatory briefings during which operational information — including guest issues, VIP arrivals, maintenance concerns, and other matters — is communicated between shifts, consuming an estimated five to ten (5–10) minutes per shift. Preliminary Conclusion. The compensability of each of these a

II. Factual Background A. The Demand Letter Allegations On January 14, 2026, Marco A. Garza of Garza, Linden & Okafor LLP, 600 Brickell Avenue, Suite 2200, Miami, Florida 33131, transmitted a twenty-three-page demand letter to VHG's General Counsel, Thomas L. Nakamura, on behalf of Daniela M. Serrano. Ms. Serrano is a former front-desk associate at the Verimark Regency Tampa property (Employee ID VHG-EMP-20220314-558

3. Verimark Shores Clearwater

4. Verimark Bayfront St. Petersburg

5. Verimark Resort & Spa Boca Raton

6. Verimark Oceanview Fort Lauderdale

7. Verimark Key West Collection Claimant's counsel asserts that these pre-shift and post-shift activities are required by VHG corporate policy and/or by the actual practice at each property, that they are performed for the employer's benefit, and that the time consumed by these activities is not de minimis. The demand letter further asserts that VHG's failure to compensate for these activities is part of a "systemic"

III. Legal Framework This section sets forth the legal principles governing the compensability of pre-shift and post-shift activities under the FLSA, including the Portal-to-Portal Act's exclusions for preliminary and postliminary activities, the "integral and indispensable" test, the continuous-workday doctrine, the de minimis doctrine, and the "suffered or permitted" standard for employer knowledge. A. The Fair Lab

IV. Analysis of Each Alleged Pre-/Post-Shift Activity This section applies the legal framework set forth in Section III to each of the three categories of pre-shift and post-shift activities alleged in the GLO demand letter. For each category, the analysis describes the nature of the activity, identifies the key factual questions that the audit must resolve, and assesses the litigation risk. A. Donning and Doffing Un

1. Nature of the Activity VHG requires employees in multiple job categories — including front-desk associates, concierge staff, bellhops, housekeeping personnel, and food-and-beverage workers — to wear branded uniforms while on duty at its hotel and resort properties. The specific uniform requirements vary by role: front-desk associates and concierge staff typically wear a branded blazer, dress shirt, slacks or skirt

2. Legal Analysis Under IBP, Inc. v. Alvarez, donning and doffing is compensable when the clothing or gear at issue is "integral and indispensable" to the employees' principal activities. 546 U.S. at 37. The Supreme Court in IBP addressed specialized protective gear — sanitary outer garments, mesh aprons, Kevlar gloves, arm guards, and shin guards — that was required by federal workplace-safety regulations and withou

1. Nature of the Activity Front-desk associates, concierge staff, and certain other roles at VHG properties are required to use desktop computer terminals running the property-management system ("PMS"), the reservation system, the point-of-sale ("POS") system, and other software applications as part of their daily work. These computer systems are essential tools for performing the core functions of these roles: check

2. Legal Analysis Computer boot-up time has been the subject of increasing litigation in recent years, particularly in industries where computer use is central to the employee's job functions. Courts have generally found such time compensable where the employee cannot perform any principal duties without a functioning, logged-in computer terminal. The analysis under the IBP "integral and indispensable" test is relati

1. Nature of the Activity At many VHG properties, outgoing and incoming shift employees participate in a brief handover meeting at the point of shift transition. During these briefings, the outgoing shift employees communicate information to the incoming shift regarding matters such as: • Ongoing guest issues (complaints, special requests, maintenance problems affecting occupied rooms); • VIP guest arrivals, departur

2. Legal Analysis The Department of Labor's regulations directly address the compensability of meetings and training sessions in 29 C.F.R. § 785.27. Under this regulation, attendance at lectures, meetings, training programs, and similar activities is not compensable work time only if all four of the following criteria are satisfied: (a) Attendance is outside of the employee's regular working hours; (b) Attendance is

V. Application to VHG Properties and Roles A. Variations Across Properties and Job Codes While the demand letter characterizes the pre-shift and post-shift practices as "systemic" across all seven at-issue properties, it is important to recognize that the specific practices may vary — perhaps significantly — from property to property and from department to department. These variations affect both the merits of the cl

VI. Available Defenses This section evaluates the defenses potentially available to VHG with respect to the pre-shift and post-shift claims. While several defenses are theoretically applicable, each has significant limitations when assessed against the specific facts of VHG's situation. A. Portal-to-Portal Act — Preliminary/Postliminary Activity Defense As discussed in Section III.B, the Portal-to-Portal Act excludes