Patel was alleged to have cheated 200 workers at 15 hotels.
AB Wire
NEW YORK: Fargo, North Dakota-based Indian American hotelier Bharat I. Patel has paid more than $184,000 to settle a federal lawsuit claiming he cheated about 200 current and former workers out of wages at 15 hotels.
Patel forked out the money, but was allowed to deny any wrongdoing, according to the terms of the consent judgment, reported the Echo Press.
U.S. Department of Labor investigators found that Patel violated the Fair Labor Standards Act by misclassifying some employees as salaried exempt and failing to pay overtime and at least the minimum wage to front-desk clerks, housekeeping staff and other hotel employees.
Without admitting to any of the allegations, Patel agreed to settle the lawsuit brought December 15 by the Labor Department and U.S. Attorney’s Office for North Dakota.
Patel agreed to pay $122,870.97 in back wages for the period from December 17, 2011, to June 16, 2014, and pay an additional $61,435.50 in damages directly to employees for the same time period.
In Alexandria, the judgment will benefit workers at Country Inn and Suites, reported Echo Press.
Back wages and damages will also be paid to employees who worked at 13 North Dakota hotels in Fargo, Jamestown, Dickinson and Wahpeton, as well as one hotel in Glendive, Montana, the report said.
A consent judgment was entered July 10 in U.S. District Court in Fargo. The Labor Department acknowledged receiving the payments from Patel on July 14.
“Restoring these earned wages will make a meaningful difference in the quality of life for these workers and their families. All employees deserve fair compensation for hard work,†Betty Campbell, the department’s acting regional administrator in Denver, said in the news release.
Patel’s Fargo attorney, Michelle Donarski, said in an emailed statement to the Echo Press that Patel believed that all employees were compensated for all hours worked, including overtime. She said he relied on hotel managers and employees to accurately track and report hours worked, and on a payroll company hire by Patel to accurately calculate and pay overtime.
4 Comments
So they are all gonna get less than $1000 bucks each? After legal expenses and stuff it’s probably gonna be like $600 bucks and that’s gonna “make a meaningful difference?” Anybody trying to loot these poor minimum wage workers should be heavily fined.
“Patel was alleged to have cheated 200 workers at 15 hotels.” This only proves that Indians are cheats and frauds
“Patel was alleged to have cheated 200 workers at 15 hotels.” This only proves that Indians are cheats and frauds
Since so many days and news reports, almost all financial fraud accused or guilty have last name Patels!