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Hotels facing labor suit
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Posted on Jan 29 2001
The US Department of Labor over the weekend filed a suit against two Saipan-based companies for failure to release to their employees payment for works rendered beyond the legally-allowed hours.
The US labor department filed the case before the US District Court against the two firms on grounds that they fell short of their obligations to release overtime payments after it has employed its staff to order, receive, unload, or handle goods and materials shipped directly from points outside the CNMI.
Stanford Corporation which owns and operates the Magellan Club Hotel and Carson Saipan Corporation, doing business as Stanford Resort Hotel, have been cited in separate charges for violating the Fair Labor Standards Act of 1938.
According to the suit, the employers further engaged its employees to prepare, transmit, mail or receive reports, letters correspondence, billings or remittances to and from points outside the CNMI, and other commercial activities.
Plaintiffs assert that the Magellan Club employed the services of its employees for work hours exceeding 40 hours since March 2000.
Stanford Hotel employees also claim the hotel management failed to do the same since July of last year.
Aside from asking payment for the cost of filing the suit, US Labor officials are also asking the court to stop the two companies from continuing their practice of not paying their employees for overtime work. (MM)
