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Labor & Employment Law

: Jottings By An Employer's Lawyer

5th Circuit - No Duty To Reimburse Expenses Under H-2B Visa Program

By Michael W. Fox, Esq.

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Not many Katrina related cases have been employment law cases, but yesterday the 5th Circuit dealt with an FLSA challenge arising out of a hotel's hiring of workers under the H-2B visa program in the hurricane's aftermath. The challenge was simple. The hotel did not reimburse the workers for their recruitment, transportation and visa expenses, and therefore they did not pay them the minimum wage, free and clear.

The Court said no, basically relying on a regulation by the Bush Department of Labor issued on December 19, 2008. See Fed. Reg. 78020 et seq. The bottom line, the employer is not on the hook for the expenses. Castellanos-Contreras v. Decatur Hotels (5th Cir. 2/11/09) [pdf].

Full post as published by Jottings By An Employer's Lawyer on February 12, 2009 (boomark / email).

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