Federal court sanctions Wisconsin hospitality group

Listen to this article

Earlier this month, U.S. District Court Judge Brett Ludwig in the Eastern District of Wisconsin granted the U.S. Department of Labor’s motion for sanctions against Arora Hospitality Group LLC, Banee Corp., Harjap Hospitality Group LLC, MKE Oil Corp., Oshkosh Hospitality Group LLC and owner Hardeep Arora. The group primarily operates hotels in the Milwaukee and Oshkosh, Wis. areas.

The court ordered the five corporate respondents and owner Hardeep Arora to comply with the Wage and Hour Division’s subpoenas by Jan. 15, 2024 and subjected them to a daily fine of $60 per day thereafter for failure to comply. It also noted that the statute of limitations remains tolled until the department confirms their compliance in full, with the subpoenas. Hardeep Arora did not appear at the Jan. 5, 2024 hearing and has not responded to the court order.

The Wage and Hour Division opened an investigation with Arora Hospitality Group LLC, Banee Corp., Harjap Hospitality Group LLC, MKE Oil Corp., and Oshkosh Hospitality Group LLC to determine compliance with the Fair Labor Standards Act on Aug. 11, 2022. After the companies failed to comply with the Wage and Hour Division’s request for information, the agency issued subpoenas to the five corporations on Nov. 21, 2022. On May 15, 2023, the court issued an order to show cause. After Hardeep Arora failed to comply, the court found him to be in civil contempt on June 30, 2023. Hardeep Arora appeared at a hearing on Dec. 5, 2023, and requested additional time to comply, but failed to do so or to appear at the Jan. 5, 2024, hearing, according to government officials.

“Compliance with federal subpoenas and wage investigations is not optional,” said Wage and Hour Division Regional Administrator Michael Lazzeri in Chicago.

“In recent years, we have seen employers facing court costs and attorney’s fees only to learn our investigators found minor violations, if any, after courts forced them to cooperate,” Lazzeri added.

Other officials agreed.

“Employers can try to ignore or delay an investigation, but when they do, the department will seek a court order, if needed, to complete compliance reviews and make certain employees’ legal rights and protections are being respected,” Regional Solicitor Christine Heri added.

For confidential compliance assistance, employees and employers can call the agency’s toll-free helpline at 866-4US-WAGE (487-9243), regardless of where they are from.