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Employer sanctioned for non-payment of settlement amount
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Posted on Oct 02 2004
A Tinian employer was ordered to pay liquidated damages to a former employee after failing to comply with their settlement agreement in a labor case.
Employer Anthony Scragg, owner of Carolinas Air Conditioning, had entered into a settlement agreement with nonresident worker Danilo A. Calumba after the worker accused him of nonpayment of wages and illegal deductions.
Under the agreement, Scragg was to pay Calumba $625.94 on an installment basis, from March 30,2004 until June 30, 2004.
The employer paid $150 to the complainant on June 30, but failed to make any other payments due under the settlement agreement. As of Sept. 22, $475.94 of the settlement remained unpaid and overdue.
“Respondent’s failure to make payments as agreed in the settlement agreement constitutes a breach of the settlement and a violation of the confirming administrative order,” noted Labor hearing officer Jerry Cody.
Scragg failed to attend the hearing; therefore, he was not able to explain or justify his failure to comply with the terms of the settlement agreement.
Cody ordered the employer to pay the $475.94 unpaid portion of the settlement, together with liquidated damages of the same amount. He was told to pay in monthly installments of $150 each, due on the 30th of each month until the settlement is fully paid.
Cody also imposed a $500 fine against Scragg for violating the Nonresident Workers Act for his failure to pay wages and illegal deductions.
However, the sanction was suspended on the condition that the employer fully complies with the repayment.
If the employer fails to make any payment as ordered, the sanctions will become immediately due within 15 days of the missed payment date, Cody said.
