CWS 3.0: August 1, 2012


Clients to Pay Back Wages to Contingents

Five hospitality companies in South Dakota that used an employment agency will pay more than $124,000 in back wages to 293 workers, the U.S. Department of Labor reported. The firms will also pay $79,000 in penalties.

The Department of Labor reported that investigations by its Wage and Hour Division found violations of the H-2B temporary nonimmigrant visa program at the companies.

One of the charges included allowing their staffing firm, Global Employment Agency, to collect payments from workers seeking jobs, according to the Department of Labor. Global Employment Agency recruited and hired H-2B workers from Indonesia and the Philippines and required payments that are not allowed, the agency reported. 

In addition, the companies didn’t pay the offered wage promised for all hours worked during the period of employment, according to the Department of Labor. They were also accused of failing to reimburse some H-2B workers for inbound travel expenses and not paying proper overtime compensation.

According to the Department of Labor, firms ordered to pay back wages include:

  • Xanterra Parks and Resorts, which operates concessions and dining facilities at Mount Rushmore National Park, will pay $20,987 to 20 employees and $11,720 in civil penalties.
  • Mount Rushmore KOA, a campground in Hill City, S.D., was ordered to pay $23,028 to 52 employees and $20,945 in civil penalties.
  • Shiba Investments, which owns the Adoba Eco Hotel in Rapid City, S.D., will pay $56,289 to 92 employees as well as $38,225 in civil penalties.
  • The Hampton Inn will pay $21,771 to 123 employees and $5,014 in civil penalties.
  • America’s Best Value Inn will pay $2,527 to six employees and $3,260 in penalties.


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