THE United States Department of Labor wants the federal court to hold Imperial Pacific International in contempt for violating the previous consent judgment entered and for not paying their employees for over two months.
District Court for the NMI Chief Judge Ramona V. Manglona on Wednesday has scheduled a hearing for USDOL’s petition on January 21, 2021 at 8:30 a.m.
In its eight-page petition for contempt and for an order for IPI to show cause, the USDOL stated that IPI created another humanitarian crisis in the CNMI.
The USDOL has cited IPI’s executives unlawfully requiring stranded employees to work without pay during a global pandemic, and failing to meet the workers’ basic necessities or provide for their return to their home countries.
The petition also noted that the USDOL on Nov. 22, 2020 has debarred IPI from H-2B program for a period of five years for failure to pay back wages.
THE USDOL wants the court to enforce the April 11, 2019 consent judgment and for the court to issue an order finding IPI, IPI’s Chairperson and Executive Director Cui Li Jie, and IPI CNMI Chief Executive Officer Donald Browne in civil contempt for violating the judgment.
USDOL also wanted the District Court for the NMI to issue an order requiring IPI to purge themselves of their contempt by paying $788,022.54 to their employees and also requiring them to purge themselves of their contempt by paying to the USDOL Secretary $1,379,426 in back wages owed under the judgment.
The USDOL also wants the court to require IPI to place 2,000,000 in an escrow account prior to their employees resuming work.
It also wants the court to issue an immediate injunctive relief.
“Because defendants have not paid most of their employees for their work in nearly two months, the Secretary respectfully requests that the court hear this petition as soon as it is convenient for the court, said USDOL senior trial attorney Charles Song who filed the petition on Dec. 15.
Song in his declaration told the court that he emailed IPI’s counsel of record Michael Dotts and advised him in writing that the USDOL would move for contempt if defendants did not confirm they would immediately comply with the judgment by paying their employees for all wages owed and paying all monies owed under the judgment.
According to Song, Dotts replied via email on December 3, 2020 that he has “suspended working for IPI.”
Out of an abundance of caution, on December 4, 2020, Song also sent IPI’s prior counsel Eugene Sullivan an email requesting to meet and confer regarding the Secretary’s contempt petition.
Song said: “To date prior counsel has yet to respond to his email.”
Song also said on Dec. 7 at 4:35 p.m. he spoke with Browne who confirmed that IPI was no longer represented by Dotts in the matter and that he could not provide assurances that IPI would immediately comply with the judgment.
IPI last year had agreed to a consent judgment with the USDOL to settle and resolve labor violations by its construction contractors.
IPI among others agreed to pay USDOL $3,360,000 for back wages, liquidated damages, and civil monetary penalties.
According to the consent judgment the USDOL conducted Fair Labor Standards Act investigations on the casino construction project for the periods of January 22, 2016 to December 19, 2017.
The investigation revealed labor violations by IPI’s construction contractors’ failure to pay overtime and minimum wages, as well as maintain records required by FLSA.
IPI had economic control over the casino construction project and its contractors and workers on the project said the US DOL.
The consent judgment also further prohibits IPI and its agents from violating the labor provisions.
It was signed by IPI Holdings chairwoman Cui Li Jie, her lawyer, Eugene R. Sullivan, and Boris Orlov, senior trial attorney for USDOL
The parties have agreed to settle and resolve all violations caused by the failure of IPI’s construction contractors to pay overtime and minimum wages as required by FLSA through the consent judgment.
IPI agreed to the consent judgment and waived further contest of the complaint by USDOL.
IPI through the consent judgment acknowledged that threatening or retaliating against any employee for accepting money due from the judgment may subject them to equitable and legal damages, including punitive damages and civil contempt.
By agreeing to the consent judgment, IPI will comply with FLSA and shall amend their payroll practices and require all contractors to amend and maintain their payroll practices by paying all employees an hourly rate in compliance with minimum wage and overtime provision of the labor law.
Further, all production or other bonuses will be included in calculation of the regular rate for purposes of computing overtime.
IPI and its contractors will also maintain records for inspection and upon request by USDOL whether unannounced or not announced.
IPI will pay USDOL $1,580,000 for back wages, $1,580,000 for liquidated damages, and $200,000 for civil monetary penalties totaling $3,360,000.
According to Song, “Notwithstanding these prohibitions, defendants admit that four payrolls since October 9, 2020, have not been paid. These unpaid payroll cover work performed by IPI employees dating back to the end of September, 2020. Egregiously, while defendants have not paid their employees they still required them to continue to work without pay for over two months.”
Song said the memorandum issued by Browne confirms defendants are delinquent on payrolls 21-24 and indicated they would not be able to meet their obligations for payroll 25, the December 4, 2020, payroll.
Defendants has been given ample time and numerous opportunities to comply with the FLSA and Judgment but has demonstrated an unwillingness to do so, said the government lawyer, flouting the court’s judgment.
“Defendants can put forth no reasonable justification for their failure to comply with the FLSA and the judgment while continuing to profit from their employees’ labor. This case requires the remedy of a contempt order to ensure compliance because defendants refuses to pay the wages owed to their employees while profiting from their labor, continues to violate the judgment, and are exploiting workers already struggling because they have not been paid in over two months,” USDOL stated.
