The Wall Street Journal (link not available) reported on a suit against Decatur Hotels, the largest pre-Katrina hotel firm in the City, alleging unfair and illegal exploitation of workers it had recruited to work.
The problems we hear about labor shortages in New Orleans and the Katrina cleanup are consistent with most post-disaster recoveries of large size. I have posted several times before about worker injury and work rights among cleanup workers for Katrina. One of the studies was by The New Orleans Workers Justice Coalition.
The lawsuit filed yesterday in federal court in Louisiana against closely held Decatur Hotels and Chief Executive F. Patrick Quinn III touches on the hot-button issue of finding workers for the Gulf Coast region following last year’s devastating Hurricane Katrina. That debate centers on whether companies are hiring foreign workers, mainly Latino migrants, because they are cheaper or because there is a dearth of U.S. residents available to take blue-collar jobs. Many illegal immigrants, mainly from Latin America, have been flocking to New Orleans to do cleanup work.
The lawsuit, which seeks class-action status, involves an unusual move by Decatur to recruit foreign workers under a government program, known as the H-2B guest-worker program. To qualify for the program, employers must prove to the government that they cannot find U.S. residents to fill the jobs in question. The program is designed to hire foreign workers to do temporary work in nonagricultural areas, often on a seasonal basis.
Several other companies in the region have also hired foreign workers under the guest-worker scheme after winning approval from the Labor Department, according to worker-rights organizations. About 300 foreign workers are believed to have been hired early this year by Decatur to do housekeeping, maintenance and other work at its properties, according to officials at the National Immigration Law Center, a Washington-based advocacy group involved in the case. In the lawsuit, 82 workers from Bolivia, Peru and the Dominican Republic allege that Decatur and Mr. Quinn violated the Fair Labor Standards Act by failing to reimburse them for fees paid to labor recruiters working as agents of the hotel chain abroad, as well as travel expenses and visa fees adding up to as much as $5,000. The lawsuit says Decatur should have made those payments in their first week of work to comply with labor law. The lawsuit further states that the company exploited the workers’ indebtedness and lack of familiarity with U.S. laws to violate their legal rights.