‘Gardenia receiver is being personal’

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Posted on Jun 08 2005
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Pacific Gardenia Hotel owner and former general manager Ronald Sablan admitted yesterday that employees were not paid some wages under his administration, but maintained that they always received full compensation before they left the company.

“I don’t deny that the hotel had financial problems; that’s why I filed for bankruptcy. Actually, we started having problems with back wages since 2001. But it had always been my practice to pay the employees before they left the company. As soon as their contract was over, I made sure they’re compensated,” Sablan said.

He was commenting on accusations made by 11 former Pacific Gardenia workers that the hotel’s receiver, Rex Palacios, was ignoring their demand for payment of salary and back wages totaling $19,035.54.

Palacios said he could not pay the workers because “my hands are tied.” He explained that the time cards and other documents supporting the workers’ claims for back wages—all of which were accumulated under Sablan’s management—could not be located.

Palacios also said as a court-appointed receiver, he needed instruction from a judge before he could act on the workers’ demand.

However, Sablan maintained yesterday that all time cards were in the hotel management’s office when he left.

“I think [Palacios] is just washing his hands on all this. The figures in the workers’ complaints all came from company records, the same ones that U.S. [Department of] Labor and local Labor used when they were investigating claims for back wages. All these records are in the office,” said Sablan.

He also expressed disappointment that his name was dragged into the hotel workers’ most recent complaint. “I have nothing to do with this. I’m really pissed off because [Palacios] became personal in dealing with this situation,” Sablan said.

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