THE U.S. Department of Labor said Imperial Pacific International has refused to pay its employees for over two months and has failed to pay the back wages ordered by the federal court judgment handed down on April 11, 2019.
In its notice filed in federal court, USDOL added that IPI executives “unlawfully required stranded employees to work without pay during a global pandemic, failed to meet their basic necessities or provide for their return to their home countries and have created another humanitarian crisis [in the] CNMI.”
USDOL said IPI’s disregard for its employees, the federal court Judgment and the Fair Labor Standards Act or FLSA cannot continue.
USDOL also notified the court that the Pacific Rim Land Development LLC lawsuit against IPI is related to the consent judgment entered by the court on April 11, 2019, “which enjoined IPI from violating the FLSA.”
According to the notice of related case, the consent judgment provided for a payment plan totaling $3,360,000 including a December 2019 payment of $1,020,000.
IPI defaulted on its December 2019 payment, USDOL stated.
On May 29, 2020, IPI made a partial makeup payment of $250,000.
USOL also noted the amended judgement in the amount of $6,909,333.43 entered against IPI on May 28, 2020 in the Pacific Rim lawsuit.
On June 8, 2020, a writ of execution was issued to several banks.
According to IPI representations and public statements, these writs caused it to default on its obligations to IPI employees and to miss its payroll, USDOL stated.
“IPI’s employees recently held public protests regarding the missed payrolls,” USDOL added.
It said that any ruling the court enters in the Pacific Rim lawsuit should ensure that “IPI is able to comply with the court’s injunction requiring IPI to comply with FLSA, including remedying missed payroll and meeting its payroll obligations going forward.”
IPI last year agreed to a consent judgment with the USDOL to settle and resolve labor violations by the casino investor’s former construction contractors.
IPI agreed to pay USDOL $3.36 million for back wages, liquidated damages, and civil monetary penalties.
The consent judgment was signed by IPI Holdings chairwoman Cui Li Jie, her lawyer Eugene R. Sullivan, and Boris Orlov, senior trial attorney for USDOL.
Asked for comment, IPI said it “has been actively working on funding solutions for the challenges it’s facing. Like so many other businesses, IPI is doing its best to find a way through a difficult period and is confident about the future. IPI really appreciates its employees’ understanding, patience and support.”
