IMPERIAL Pacific International LLC’s first settlement payment in the amount of $164,270.08 was timely delivered on April 1, 2021, IPI attorney Michael Dotts said.
“IPI continues to work with the United States Department of Labor’s Field Office to match up check numbers to names and assure the checks actually cleared. This process is complicated because the checks were written on the account of the payroll service provider and not on IPI’s account,” Dotts stated in his 12th status report to the District Court for the NMI.
He said IPI’s payroll was distributed on March 26, and its next payday is April 9.
Dotts said IPI employee housing still has power, and food services have continued without interruption for all the H-2B workers.
There is no repatriation to report, and construction work at the IPI resort in Garapan remains suspended as ordered by the court, he added.
On March 29, 2021, Chief Judge Ramona V. Manglona approved the first amended consent judgment between IPI and USDOL and suspended her previously ordered receivership for the casino developer.
USDOL earlier told the court that the “defendants have substantially come current on the payment of their payroll and are in the process of determining the full extent of their liability to their employees from June 1 to Feb. 28, 2021.”
The total amount owed under the previous consent judgment was $3.36 million.
Of the amount, IPI paid a total of $1,929,425.28 from March 2019 to March 2021.
The remaining balance is $1,430,574 plus $47,856 in wages currently owed for a total amount of $1,478,430 due in the first amended consent judgment.
To pay this amount, IPI was ordered to make incremental monthly payments of $164,270.08 from April 1, 2021 to Dec. 1, 2021.
As for security against future payroll violations, the USDOL stated that IPI paid $250,000 on Feb. 28, 2021.
The security deposit will be held for a period of one year from the entry of the first amendment judgment to ensure against any failure by IPI to meet its payroll obligations during the year.
At the end of the one-year period the amount remaining will be applied by the USDOL to any amounts due to the department from IPI for any case investigated by the Wage and Hour Division.
IPI has also offered its Flame Tree Terrace property, which it owns through an affiliate, East Gain Global Ltd., as security for its monetary liability of $1,478,430.72.
The receivership earlier ordered by the court will remain suspended.
“Should defendants fully comply with this first amended consent judgment and make all of the payments required hereunder, then on Dec. 1, 2021, the [U.S. Labor] Secretary shall cause to be filed a satisfaction of judgment.”
