Labor Law Violations Found at South Dakota Resort

Following an investigation by the U.S. Department of Labor (DOL), Custer State Park Resort has been ordered to pay back wages and has been assessed monetary penalties. The resort located in the Black Hills of South Dakota was found to be in violation of the H-2B temporary visa program and the Fair Labor Standards Act (FLSA). According to the Rapid City Journal, Custer State Park Resort was fined $65,000 for “willful” violations of labor laws and ordered to pay 72 workers back wages of $93,000.

The investigation stems from the resort’s participation in the H-2B temporary visa program, which allowed them to employ scores of foreign workers from Indonesia and the Philippines. The foreign worker program requires that employers pay the temporary workers the higher of the prevailing wage or the greatest minimum wage guaranteed by the locality, state, or federal government. Though some states have passed legislation enacting minimum wages that are higher than the federal standard, South Dakota has not. The FLSA sets the federal minimum wage at $7.25 per hour of work.

The violations allegedly committed by Custer State Park Resort were wide-ranging. The most widespread of its violations was that the resort routinely asked employees to work over 40 hours per week, but did not compensate them for overtime. Employees were also reportedly asked to do jobs that were not in their job description nor approved by the DOL, jobs were misclassified, and a failure to accurately report dates and jobs for which workers were needed. In addition, an agency that it employed (Global Employment Agency) was charging prospective employees up to $1,500 in unlawful fees to receive jobs. The resort is liable for the behavior of its contractors, but has since terminated their relationship with the agency.

Labor laws, particularly the intersection of state and federal guidelines, can be quite confusing to both employers and employees. If you or someone you know may not be receiving the regular or overtime pay deserved, it may be possible to enter a lawsuit to recover compensation. Laws stipulate that employers may not retaliate against employers who bring complaints to the DOL or enter lawsuits, so do not hesitate to act now. Contact an experienced overtime attorney to see if you might be entitled to receive back pay for underpayment or unpaid overtime.