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NEWS 12 April 2019

Imperial Pacific fined $3.4m for labour violations

By Nathan Joyes

Imperial Pacific International (IPI) will pay $3.4m to the US Department of Labour after investigations revealed labour violations on the site of its under-construction Saipan resort.

The company failed to pay workers minimum wages or overtime between January 2016 and December 2017.

IPI’s new resort will combine accommodation with luxury casinos, which will have over 200 gaming tables and 350 slot machines.

The company's fine will cover $1.6m in back wages, $1.6m in liquidated damages and $200,000 in civil monetary penalties.

All of these are separate payments needing to be paid by December 2019, 2020 and 2021 respectively.

IPI has also been ordered to "amend its payroll practices and require all contractors to amend and maintain their payroll practices, by paying all employees an hourly rate in compliance with minimum wage and overtime provision of the labour law.”

The company recently said it could miss its latest February 2021 construction deadline as a direct result of labour shortages at Imperial Pacific Resort.

IPI currently has 253 construction workers and IPI’s VP for Construction, Eric Poon, said it would need 1,000 workers in order to meet the current deadline.

RELATED TAGS: Land-Based | Industry | Legal & Regulatory | Financial
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