Small and midsize business owners should be vigilant when it comes to complying with employment laws. A recent case involving a horse training business serves as a stark reminder of the consequences of non-compliance with federal worker programs. The U.S. Department of Labor (DOL) has ordered the stable to pay $205,000 in penalties and reimbursements following a thorough investigation and litigation.
Settlement Agreement to Reimburse Workers
The horse training business based in New York, has entered into a settlement agreement with the DOL to reimburse its grooms and hot walkers a total of $129,776. These reimbursements aim to resolve violations of the federal H-2B worker program, which allows businesses to employ temporary visa workers. It’s important to note that this isn’t the first time the stable has faced such penalties. In recent years, it has been ordered to make payments to workers, including more than $500,000 in back wages and damages.
Violations Uncovered
The investigation in this latest case found multiple violations committed by the stable between December 2016 and December 2019. Some of the key violations included:
- Failing to reimburse workers for expenses incurred during travel to and from the U.S., including visa fees.
- Seeking and obtaining kickbacks from workers, ostensibly to cover attorney fees.
- Employing workers outside of New York, contrary to statements made during the visa application process.
- Overstating the number of H-2B workers needed by the employer.
- Not disclosing material terms of the position to potential U.S. job applicants, such as the availability of free onsite housing.
- Protecting Workers’ Rights
H-2B workers often find themselves vulnerable to wage shortages and other rights violations. Wage and Hour Division District Director David An emphasized that employers must comply with the law to avoid sanctions, including fines and potential program disqualification.
In addition to the wage reimbursements, the horse training business has been assessed $75,223 in civil money penalties for its violations. To ensure future compliance, the settlement includes enhanced measures such as hiring an independent monitor to conduct regular audits, providing workers with updated training in languages they understand, forbidding certain managers from involvement in the H-2B program, and allowing the DOL to provide training to the horse training business’ H-2B workers regarding their rights.
Preventing Future Violations
Jeffrey S. Rogoff, regional Solicitor of Labor in New York, stated that the DOL will pursue all necessary legal avenues to obtain proper compensation for employees and prevent future violations by employers. This settlement aims to reimburse underpaid workers, penalize the horse training business for its actions, and change the employer’s behavior through ongoing monitoring and audits by an independent party.
Conclusion
The case involving the horse training business underscores the importance of adherence to employment laws, especially when participating in federal worker programs. Business owners must prioritize compliance not only to avoid penalties but also to protect the rights and well-being of their employees. By staying informed about labor regulations and following them diligently, businesses can maintain their reputation and ensure fair treatment for their workers.