Hotel Fined $2M for Hiring, Firing, Rehiring Undocumented Workers

Grand America Hotels and Resorts agreed to pay a nearly $2 million fine as part of a settlement resulting from the employment of undocumented workers at one its properties.

According to a press release from the U.S. Attorney’s Office, Grand America Hotels and Resorts agreed to pay a legal settlement of almost $2 million related to claims that the chain rehired 43 workers for its Salt Lake City property, all of whom were previously fired because of their undocumented immigration status.

In 2011, before Grand America began using the federal E-Verify system to check worker eligibility, immigration officials cited 133 of the company’s employees who were working at the establishment illegally. After a warning from government officials, the hotel fired all 133 of them.

Within a few days, however, prosecutors say lower-level managers at the establishment created two temporary employment agencies to hire back 30 of the former workers, most of whom worked in housekeeping, according to Salt Lake City’s Fox 13. Shortly thereafter, the rogue managers formed a third shell company to rehire more of the undocumented employees under fake names and documents.

The Grand America Hotel, Salt Lake City’s only 5-diamond hotel, has since fired three managers involved in the process and reprimanded two others. A fourth manager at another Grand America property, Little America Hotel, was also fired.

Prosecutors intend to press charges against the individuals involved. The hotel’s senior executives are safe from prosecution due to the fact that authorities say they were unaware of the ordeal. “We don’t believe there is evidence of corporate involvement in the efforts to set up the temporary employment agencies and the rehiring of the undocumented workers,” acting U.S. Attorney for Utah Carlie Christensen said.

Company owners and senior executives have fully cooperated with the investigation. Brett Tolman, an attorney for Grand America, was quoted by ABC News as saying, “We conducted an extensive internal review and investigation and cooperated with the government from the very beginning of this when it was brought to our attention.”

The U.S. Attorney’s Office points out that even though Grand America has been helpful, the company must still pay a fine of $1,950,000 million to the U.S. Department of Homeland Security, because its employees were acting on behalf of the company. Officials claim to have arrived at the settlement amount by taking into account the total number of illegal immigrants involved and the hotel’s level of cooperation.

Additionally, Grand America will spend $500,000 adopting new hiring policies, including retraining its attorneys on immigration procedures.

“All industries, regardless of size, location and type are expected to comply with the law,” said Kumar Kibble, a Homeland Security agent in charge of Utah investigations. “As this significant settlement demonstrates, there are real consequences for businesses that employ an illegal workforce.”

[Photo: VFM]