Florida restaurant stole tips and owed U.S., international workers $184,000, feds say
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Florida companies and H-2A visa worker mistreatment
Abuse of H-2A workers isn’t limited to Florida companies, but the U.S. Department of Labor hasn’t had much trouble finding the problem here.
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A Naples restaurant that charges $129 for a three-course prix fixe menu — $149 if you order the tenderloin — lied about jobs, stole tips, improperly paid and otherwise abused workers from the U.S. and imported via H-2B visa program, a U.S. Department of Labor said.
Labor announced that Sails Restaurant paid $184,139 in back wages to 56 workers, $3,288.19 per employee, and a $53,536 civil money penalty for H-2B program violations.
Sails Director of Operations Corinne Ryan said in an email to the Miami Herald that Sails cooperated with the investigation, has used the H-2B program since 2019 and “60% of our H-2B participants are returning employees, a figure that supports our view of the professional opportunities and rewarding work environment we’ve created.”
As for the results of Labor’s investigation, Ryan said the restaurant she runs with husband and general manager Veljo Pavicevic “disagreed with the DOL’s claims, however, decided not to seek further review of the investigator’s findings due to the distraction and costs associated with a protracted process.
“We are pleased the matter is now closed.”
READ MORE: The 8 Miami restaurants in Michelin’s 2024 guide
What Sails is accused of doing to 56 workers
Labor’s Wage and Hour Division said Sails management managed to sideswipe the Fair Labor Standards Act (FLSA) while piling up H-2B program violations. Wage and Hour said Sails:
▪ “Illegally kept the tips of some H-2B and U.S. workers.”
▪ Tipped employees were paid at the wrong overtime rate.
Also , one employee wasn’t paid his last paycheck.
The H-2B violations, investigators say, started with:
▪ Not listing all the qualifications in the job order.
▪ Not notifying workers of their rights.
▪ “Imposing special experience requirements for H-2B workers to qualify for jobs.”
▪ Lying about job requirements “including willfully misrepresenting access to high-paid server positions” by “suggesting unlimited earnings potential when, instead, no such job existed and promotional positions were out of reach for many.” This also includes moving an H-2B worker from a dining room attendant to construction laborer.
▪ “Improperly classified jobs or excluded job tasks on work orders.”
▪ Not reimbursing the visa expenses for H-2B workers, which is a requirement of those employers using the program.
READ MORE: $6.5 million is waiting for 14,000 Florida employees who got shorted on pay, feds say
What is the H-2B visa program?
Businesses that experience seasonal peaks, such as parts of Florida’s hospitality industry, use the H-2B program to fill their staff. Workers can be brought into the United States on a non-immigrant status for a limited period. Their pay must at least equal the prevailing wage or the minimum wage that applies.
The H-2B program works similarly to the H-2A program, but the former program is for non-agricultural work and the latter program is for agricultural work.
To reach Labor’s Wage and Hour Division, you can go to one of the local offices or call 866-487-9243 (4US-WAGE). Help is available in around 200 languages.
This story was originally published February 14, 2024 at 2:55 PM.
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