IMPERIAL Pacific International LLC’s payroll was distributed on Friday, March 26, attorney Michael Dotts told the federal court.
“This payroll is identified as Payroll 7 for 2021. There were no issues or problems and all employees were paid on time,” Dotts added.
IPI’s next payday is April 9, 2021, the IPI lawyer said in his 11th status report to the District Court for the NMI.
Dotts said IPI employee housing still has power, and food services have continued without interruption for all H-2B workers.
There are no repatriations to report, and construction work at the IPI site remains suspended as ordered by the court, he said.
“Documents were provided to the acting [U.S. Labor] Secretary’s field office on Friday, March 26, verifying the receipt by employees of wages for payrolls 21 through 27 for 2020, and 1 through 5 for 2021, per the request of counsel for the acting Secretary. These documents will be used to verify the exact amount of wages remaining to be paid,” Dotts said.
Chief Judge Ramona V. Manglona earlier ordered IPI and IPI chairwoman Cui Li Jie to purge their contempt of court by, among other things, paying for $1,182,793 in back wages under the 2019 consent judgment.
If IPI fails to comply, Judge Manglona said the casino investor will go into receivership.
Modification
On March 23, 2021, IPI and the U.S. Department of Labor requested the court to modify the April 11, 2019 consent judgment through a stipulation.
The stipulation stated 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 February 28, 2021.”
The total amount owed under the previous consent judgment was $3,360,000.
According to the stipulation of the parties, IPI paid a total of $1,929,425.28 toward the consent judgment from March 2019 to March 2021.
In the stipulation, IPI also affirms and consents to the modification of the amounts due.
The remaining balance from the previous consent judgment is $1,430,574 plus $47,856 wages currently owed for a total amount of $1,478,430.00 due in the first amended consent judgment.
To purge contempt and to pay the amounts remaining in the initial consent judgment as well as the unpaid total for work periods 21-26 and 1-3, IPI is ordered to make incremental monthly payments of $164,270.08 from April 1, 2021 to December 1, 2021 for a total amount of $1,478,430.72.
IPI owes additional payments to its employees that it will pay directly to its employees outside of the agreement in equal installments.
As to the security against future payroll violations, the USDOL stated that IPI paid $250,000 on Feb. 28, 2021 to be used as security for the payment of current wages.
The USDOL noted that IPI’s payroll obligations are currently significantly smaller in part because of the stop work order at the construction site.
“Before the construction stop work order can be lifted, IPI will deposit an additional amount with the USDOL to ensure it holds at least three months of anticipated payroll…. If the amount held as security deposit falls below the required amount and is not replenished by IPI within 10 business days, the construction stop work order will be automatically reimposed upon 15 days’ written notice to IPI and to the court.”
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 shall be applied by the USDOL to any amounts due to the department from IPI for any case investigated by the Wage and Hour Division.
Security
IPI 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.
In the event of default, the full gross amount outstanding under the consent judgment as amended, plus post-judgment interest, shall be immediately due.
If IPI fails to cure the default within five business days, the USDOL will notify the court of the failure, and within 10 days the court-appointed receiver is authorized to exercise all powers under the appointment of receivership to sell IPI’s assets including but not limited to the Flame Tree property to pay the total judgment.
The receivership ordered by the court will remain suspended until such time the USDOL files a notice of failure to cure default.
But the court will reinstate the receivership to enforce compliance with the judgment if IPI fails to comply and cure within 10 days after the notice of failure to cure default is filed.
“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.”
Judge Manglona on Monday signed the first amended consent judgment, which was also signed by IPI chief executive officer Ray Yumul and IPI chairwoman Cui Li Jie.
