A $3.3 million judgement is secured against a casino developer for wage violations by contractors

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A $3.6 million consent judgement against the developer of a resort casino in Saipan was secured by the U.S. Department of Labor for minimum wage, overtime and record keeping violations by contractors working on the construction project. 

The judgement orders Hong Kong-based Imperial Pacific International Holdings, and its Saipan subsidiary Imperial Pacific International to pay $3.1 million in back wages and liquidated damages to around 1,100 employees. 

The developer of the Imperial Pacific Resort Hotel and Casino must also pay $200k in civil money penalties. 

The settlement follows an investigation by the Department’s Wage and Hour Division that found wage violations occurred when foreign-based construction subcontractors failed to pay their workforce required overtime premium rates for hours worked beyond 40 in a workweek. 

Investigators also found some of the subcontractors’ day rates placed employees’ earnings below federal minimum wage.

“This judgment demonstrates the U.S. Department of Labor’s strong commitment to ensuring employees receive the wages they have earned,” said Wage and Hour Division District Director Terence Trotter in Honolulu. “We will continue to enforce the law and level the playing field, while simultaneously encourage employers and employees to call us for assistance, and use the wide variety of tools we provide. Violations like those found in this investigation can be avoided.”

The Department’s Office of the Solicitor litigated this case.

To date, the Department has found approximately $17.3 million for more than 2,500 employees working on the Saipan hotel and casino project.

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