Labor bars restaurant owner from hiring non-resident workers

The Department of Labor has found the owner of a restaurant that had closed down due to a fire liable to pay its waitress unpaid wages plus liquidated damages.

The Labor administrative hearing office also directed the employer, American R.F. Corp., owner of the former Big Dragon Restaurant, to pay $1,000 to the government and permanently barred the company from employing nonresident workers in the CNMI for abandoning the worker.

Hearing officer Barry Hirshbein ordered American R.F. Corp. to pay Geraldine A. Raquel $1,586 in unpaid wages for three months plus $1,586 in liquidated damages, for a total of $3,172 (less withholding on $1,586).

Hirshbein granted Raquel 45 days to submit an application for transfer to a new employer.

“Raquel knew her rights and did not assert them. Raquel failed to mitigate her damages. Raquel should not be rewarded for her lack of diligence,” he pointed out.

The hearing officer determined that the complainant is entitled to transfer relief but he limited her recovery of unpaid wages, at the rate of $3.05 per hour, for a period of three months plus liquidated damages in an equal amount.

Labor records show that Raquel worked as a waitress for American R. F. Corp. beginning Aug. 4, 2005. Twenty-four days later, the restaurant closed due to a fire at the premises. Raquel did not work for the company after that date.

Initially, the company told Raquel that the business would reopen and promised her they would advise her when she could return to work. The waitress did not hear from the company since then, so she called a couple of times in September 2005.

Respondent again promised to call. Raquel had no direct contact with the company after that. She tried to contact them in December 2005 and was advised by a Ms. Chelita to look for another employer and not file a labor complaint against the company.

In January 2006, Raquel found an employer willing to hire her. She tried to contact respondent for assistance with a consensual transfer. Raquel could not locate respondent and was unable to transfer. She did not attempt any further transfer.

Raquel filed her labor complaint on June 12, 2006, less than 60 days before expiration of her contract. She claimed that she did not work at all after Aug. 28, 2005.

At the Oct. 17, 2006 administrative hearing, a representative from American R. F. Corp. did not appear.

At the hearing, Raquel testified that she has been living with her boyfriend and he is supporting her and that is why she was unable to wait to hear from respondent.

The waitress also testified that around February 2006 she learned that she was pregnant. She delivered in September. She felt that no one would hire her during her pregnancy.

In his order, Hirshbein noted that it is clear that Raquel was abandoned by her employer but the case raises important questions related to recovery of unpaid wages for the period that she did not work.

Hirshbein said Raquel was in an advantageous position in that she had someone providing support during her period of unemployment. He said Raquel appears to have been content to wait and see how things would develop.

“She waited another six months to file her labor complaint. These facts present a complete of lack of diligence in pursuing the claims,” Hirshbein said.