Faribault Carnival Operators Hit with $210K in Federal Fines
Two Faribault-based carnival operators have been ordered to pay thousands of dollars in back wages to temporary foreign workers, the U.S. Department of Labor announced Wednesday.
The department said that GoldStar Amusements Inc.—which operates rides at a host of festivals and county fairs around Minnesota—and its food vendor Lee’s Concessions “did not pay prevailing wages, pay inbound and outbound transportation costs, and keep accurate earning statements for foreign workers employed under the H-2B visa program.” The department said the alleged infractions occurred during the companies 2016 and 2017 seasons.
GoldStar Amusements and Lee’s Concessions have been ordered to pay a total of $146,243 to 55 employees, along with $63,584 in civil penalties.
“The H-2B visa program includes very specific terms regarding wages, transportation and other requirements, which are clearly defined for employers when they apply to hire foreign workers,” said Kristin Tout, director of the department’s wage and hour division district in Minneapolis, in a news release. “Employers such as these are legally responsible for knowing and complying with federal wage laws.”
Michael Featherston is the owner of GoldStar, while his wife Connie Featherston owns Lee’s concessions. GoldStar provides amusement rides, and Lee’s provides food and games.
The Department of Labor uncovered the issues during an investigation back in summer of 2017.
When reached for comment, Wayne Pierce, the companies’ attorney, said that they plan to appeal the decision before an upcoming April 13 deadline. Counter to Tout’s statement, Pierce said that the Department of Labor’s regulations are “riddled with ambiguity.”
“These standards aren’t specific in the sense of clear and easily applied,” he added. “These regulations are inconsistent. They use terms that have multiple meanings. We have to try to apply them on the run, and we did so.”
Pierce also said that the companies had a method of paying workers in a predictable manner to ensure compensation for days lost to rain, for example.
“We had a method under which everyone benefited by receiving a predictable payment,” he said. “By the end of the season, each person was paid for every hour worked without fail, and the credits they received resulted in them being overpaid relative to the hours worked.”
The attorney noted that the Featherstons took over operation of the companies back in 1992, and hadn’t had any other violations in the decades since. He said that workers enjoy their time with the companies. “These guys are like family,” he said of the workers. “They come back year after year. They have a very high returning worker ratio.”