Foreign Guest Worker Case to be Dismissed
FEBRUARY 13, 2009 - Decatur Hotels, LLC has been granted a dismissal in a post-Katrina lawsuit filed by guest workers who held H-2B visas to work for Decatur after the storm. Facing a severe reduction in its available workforce, Decatur, which owned and operated 12 hotels at the time, sought to legally employ foreign guest workers under the H-2B program. In 2006 a group of these foreign guest workers contended Decatur violated the Fair Labor Standards Act (FLSA) by not reimbursing the workers' travel, recruitment and visa expenses they incurred before they relocated to the United States. On Wednesday, February 11, 2009, the United States Court of Appeals for the Fifth Circuit found that the FLSA does not require employers to reimburse these expenses when the proper recruiting channels and procedures were followed.
Scott Day, President and CEO of Decatur Hotels says, "It is unfortunate that this matter became a legal issue to start with; being that Decatur Hotels' sole objective in using the program was to legally bring in temporary workers to help revitalize the great City of New Orleans Post-Katrina. The company is pleased with the judgment coming from this case. It allows other hospitality related businesses around the country to use the H-2B Guest Worker Program, when American workers are not available, without fear of violating FLSA regulations."
Frilot LLC, legal defense counsel for the company, did an outstanding job in identifying the issues stemming from Decatur Hotels' position. The hotel management company felt it was necessary to hire a qualified firm in order to defend the rights of the company and the lodging industry, nationally. The U.S. Department of Labor has cited the case in their final rule on H-2B procedures.
For more information, contact Jason Pitard, director of public relations for Decatur Hotels, at 504.962.5554 or 504.610.1605. Decatur Hotels is the largest independent hotel owner and operator group in New Orleans. Currently it consists of eight hotels located in the most historic areas of New Orleans.
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