Hotel in Violation of California Labor Law

Arcata, CA A California labor law case involving the Valley West Days Inn was settled for four claimants who allege unpaid wages after the hotel failed to show up last week for a labor department hearing. When that happens, the claims automatically default to the plaintiffs.

The Eureka Times Standard reported on December 4 that the Valley West hotel facility has seen 11 unpaid wage claims filed against it and owner Penta Hospitality (now doing business as Silver Creek Hospitality) since 2007. So far, eight of those claims have gone to court and a total of $19,000 in back wages has been awarded to former employees of the facility.

However, aside from one partial payment, the lion's share of that $19,000 bill has yet to be paid, according to the Eureka Times Standard.

The California labor code holds that employees are owed a fair day's wage for a fair day's work. When an unpaid wage claim is filed, a deputy labor commissioner is assigned to the case and attempts to arrive at a resolution between the parties. When a resolution isn't possible, the claim proceeds to a hearing before an administrative law judge.

Beyond back wages allegedly owed to former workers, Valley West Days Inn is said to owe the city some $150,000 accrued from unpaid bed taxes and water bills. The city indicated that garbage collection at the hotel had also been stopped due to lack of payment.

In its defense, the hotel owner noted an ongoing slump in the hotel and accommodations industry that is the worst since the Great Depression. In sum, the hotel simply doesn't have the money to pay their bills. Silver Creek Hospitality principal Mukesh Mowji added that the three principals of the chain have declined drawing a salary for quite some time.

In an interview with the Times Standard, former employees of the hotel indicated that the Valley West Days Inn failed to pay their employees on time, which flies against California labor employment law. One former employee noted that following a two-week stint at the hotel, he went looking for his paycheck and was told by management that as a subcontractor, he would not be paid regularly. The employee suggested he never agreed to his status as a subcontractor.

Hotel management allegedly told other employees that their first paycheck was withheld as policy. When the second paycheck came due, it was late. The former employee who spoke to the newspaper indicated that he had been told a complaint to the labor board would constitute a legal action, and thus he would not receive what he was owed??"another violation of California employee labor law.