Su v. Ionia Hotel Business, Inc.
1:23-cv-00050
W.D. Mich.Apr 3, 2024Background
- The U.S. Department of Labor, represented by Acting Secretary Julie A. Su, brought suit against Ionia Hotel Business, Inc. and Manhal Kashat for violations of the Fair Labor Standards Act (FLSA).
- Defendants operated as a unified business entity, falling within the FLSA's enterprise coverage.
- The complaint alleged violations of FLSA minimum wage, overtime, recordkeeping, and anti-retaliation provisions between October 26, 2019, and September 4, 2021.
- Defendants agreed to a consent judgment, admitting coverage and violations, to resolve the dispute without litigation.
- The order enjoins future violations, requires dissemination of FLSA informational notices, cancels employee lodging debts, and mandates payment of specified back wages and liquidated damages to affected employees.
- The court retains the Secretary’s right to investigate and enforce the law in the future, but each party bears its own legal costs.
Issues
| Issue | Plaintiff’s Argument | Defendant’s Argument | Held |
|---|---|---|---|
| Failure to pay minimum wage | Defendants paid below the legal minimum | Consent, no contest | Permanently enjoined from violations |
| Overtime violations (hours > 40, underpaid) | Defendants did not pay proper overtime | Consent, no contest | Must pay overtime at 1.5x regular rate |
| Faulty recordkeeping under FLSA | Defendants lacked required records | Consent, no contest | Required to keep compliant records |
| Retaliation against whistleblowers/employees | Defendants may retaliate against staff | Consent, no contest | Prohibited from retaliation |
Key Cases Cited
- None with official reporter citations were cited in this order, as the opinion is a consent judgment and focuses only on statutory violations and compliance terms.