Court: Quakertown hotel operator tried to get wage kickbacks from workers

A federal court in Pennsylvania has found the general manager of a Quakertown Hampton Inn in civil contempt for violating a February consent judgment, the U.S. Department of Labor said Wednesday.

The contempt order requires the employer to pay $8,750 in back wages, an equal amount in liquidated damages and $500 in interest to affected hotel workers, as well as $2,000 to reimburse the department’s investigative and attorney’s fees.

That’s $20,000 on top of the more than $48,000 that Ramket Enterprises and general manager Ketan Joshi were ordered to pay in February when it was determined that they were paying hotel workers straight-time wages for all hours worked and not maintaining time records.

The latest penalty follows an investigation by the U.S. Department of Labor’s Wage and Hour Division that allegedly found the hotel operators were trying to force employees to give back the awarded money.

Wage and Hour Division District Director James Cain said Ramkey and Joshi “shockingly demanded an employee kick back their rightfully earned wages. Federal law prohibits wage theft, retaliation or intimidation against workers engaging in a protected activity.”

The follow-up investigation began after authorities learned that Joshi texted the spouse of an employee due back wages and damages and demanded they repay part of the awarded money.

The department filed a motion for civil contempt on April 25. On June 13, the court found the employers in contempt and required them to pay the additional back wages, liquidated damages, interest, and fees incurred by the department.

In addition to paying wages, damages, interest and fees, the court required the employers to post a notice to inform employees that the employers may not seek or accept repayment of any amounts paid under the judgment.

Additionally, a division investigator must read a statement in Spanish to all employees that explains the employees’ rights to be free from retaliation and their right to keep the back wages, liquidated damages, and interest awarded to them by the court and distributed by the division.

“The U.S. Department of Labor will not stand by and allow employers to ignore or override their legal obligations. The department will use every tool available, including litigation, to prevent employers from violating workers’ rights,” said Deputy Regional Solicitor of Labor Samantha Thomas in Philadelphia.

The division’s Philadelphia District Office conducted the investigation. Senior Trial Attorney Andrea Luby with the department’s Office of the Solicitor in Philadelphia litigated the case.

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