Wage and Hour Division (WHD)
U.S. Department of Labor
South Dakota's Custer State Park Resort to pay 72 foreign guest workers more than $93,000 in back wages following US Labor Department investigation
$65,000 in civil money penalties assessed for willful violations of H-2B visa program
DENVER -- The U.S. Department of Labor has ordered Custer State Park Resort of Custer, S.D., to pay $93,000 in back wages to 72 workers employed at a major resort in South Dakota's Black Hills. The action is the result of an investigation by the department's Wage and Hour Division that disclosed willful violations of the H-2B temporary visa program, through which the workers were hired. Additionally, the department has assessed $65,000 in civil money penalties.
Custer State Park Resort is an authorized concessionaire of the South Dakota Department of Game, Fish and Parks. The company's legal name is Regency CSP Ventures Limited Partnership, and it operates six major resorts in the Black Hills, including historic lodges, motels, cabins, dining facilities and gift shops.
Investigators from the division's Denver District Office found that Global Employment Agency, the agent Custer State Park Resort used to recruit and hire foreign guest workers from Indonesia and the Philippines, required impermissible payments from prospective employees ranging from $530 to $1,500. Investigators also found that H-2B employees serving as dining room attendants, front desk clerks and housekeepers often worked in excess of 40 hours per week but were not paid the required overtime wage rate for such hours.
The department assessed penalties for the following violations, in addition to the company's accepting prohibited fees and not paying proper wages: the willful misrepresentation of a material fact regarding the job offer on the application for temporary employment certification, substantially failing to comply with attestations made in the application, improperly classifying jobs, placing employees outside the intended area of employment, and failing to accurately specify in the application the dates and reasons for which temporary H-2B workers were needed.
"Federal law establishes certain standards in order to protect similarly employed U.S. workers from being adversely affected by the employment of the nonimmigrant workers, as well as the rights of foreign workers who are often vulnerable to exploitation," said Chad Frasier, director of the Wage and Hour Division's Denver office. "By using all available enforcement tools – including civil money penalties assessed for willful violations – the division can ensure accountability under the law and deter future violations. Enforcement guarantees a level playing field where American workers and law-abiding businesses are not placed at competitive disadvantages."
The H-2B program permits employers to temporarily hire nonimmigrant foreign workers to perform nonagricultural labor or services in the United States. The employment must be of a temporary nature for a limited period of time, such as a one-time occurrence or for seasonal, peak load and intermittent needs. The program requires an employer to attest to the Department of Labor that it will offer a wage that equals or exceeds the highest of the following: the prevailing wage, applicable federal minimum wage, state minimum wage or local minimum wage. This wage will be paid to the H-2B worker for the occupation in the area of intended employment during the entire period of the approved labor certification. The program also establishes certain recruitment and displacement standards in order to protect similarly employed U.S. workers.
For more information about the H-2B program and federal wage laws, call the Wage and Hour Division's toll-free helpline at 866-4US-WAGE (487-9243) or its Denver office at 720-264-3282. Information also is available on the Internet at http://www.dol.gov/whd.
U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at (202) 693-7828 or TTY (202) 693-7755. The Labor Department is committed to providing America’s employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.