Quakertown hotel manager fined for seeking to recoup back wages from employees

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The management of a Quakertown Hampton Inn has been found in contempt by a federal court for violating a February consent judgment. 

According to a press release from the U.S. Department of Labor, the contempt order requires the employer to pay $8,750 in back wages, an equal amount in liquid damages, $500 in interest to affected employes and $2,000 to reimburse the department for its investigative and attorney’s fees. 

The contempt order follows an investigation by the U.S. Department of Labor’s Wage and Hour Division that found Ramket Enterprises paid straight-time wages for all hours worked and failed to keep time records, as required by the Fair Labor Standards Act. 

 In response to a Jan. 24 complaint filed in U.S. District Court for the Eastern District of Pennsylvania by the department’s Office of the Solicitor, the court entered a consent judgment and ordered Ramket Enterprises and Ketan Joshi to pay $15,137 in back wages and an equal amount in liquidated damages to 21 employees.  

They also paid $18,092 in civil money penalties assessed by the division for the willful nature of their violations. The judgment also forbids the employers from future FLSA violations. 

The department learned that Joshi texted the spouse of an employee due back wages and damages and demanded they repay part of the awarded money. 

 The department then filed a motion for civil contempt and the court found the employers in contempt and required them to pay the additional back wages, liquidated damages, interest, and fees incurred by the department. 

 “Our investigation found Ramket Enterprises Inc. and general manager Ketan Joshi violated the terms of an earlier consent judgment and then shockingly demanded an employee kick back their rightfully earned wages. Federal law prohibits wage theft, retaliation or intimidation against workers engaging in a protected activity,” said Wage and Hour Division District Director James Cain in Philadelphia. 

 In addition to paying wages, damages, interest and fees, the court required the employers to post a notice to inform employees that the employers may not seek or accept repayment of any amounts paid under the judgment. 

A call to Ramket Enterprises for comment has not yet been returned.