Holiday Inn, Hampton Owners Must Face Human Trafficking Class Action

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Owners of a Holiday Inn Express and a Hampton Inn in Oklahoma have lost their bid to dismiss a class action lawsuit claiming that they improperly lured workers with J-1 exchange visitor visas.

U.S. District Judge Scott L. Palk determined that the Jamaican workers who filed the human trafficking class action lawsuit may continue with their claims, because he found that there was sufficient evidence to support their allegations of “fraudulent conduct” on the part of the hotel owners.

The workers filed their human trafficking class action lawsuit against Apex, a Holiday Inn Express, and a Hampton Inn owned by Carolyn and Walther Schumacher. The workers claimed that the company tricked workers out of large fees when they promised them work at hotels and restaurants in the U.S.

Allegedly, the company promised the workers well-paying jobs and substantial hours at the hotels and restaurants, but would then cut their wages and hours.

Additionally, the workers claim that the owners would prohibit them from terminating their employment, even physically intimidating them to prevent them from looking for different work.

The Holiday Inn, Hampton class action lawsuit claims that many workers went into substantial debt to the company over Apex recruitment fees.

Allegedly, Apex operates as a J-1 visa sponsor, and recruits workers from oversees to work at a Holiday Inn Express and a Hampton Inn. However, workers say that the company misrepresented itself at job fairs in other countries, promising a good job but seeking to trap workers into exploitative employment.

According to the workers’ human trafficking class action lawsuit, Apex violated the federal Trafficking Victims Protection Reauthorization Act.

Judge Palk determined that the workers presented “sufficient allegations of financial harm and a scheme, pattern or plan to withstand dismissal, the court need not separately address the sufficiency of the allegations concerning nonphysical and/or psychological harm or abuse of legal processes.”

The workers claimed that when they worked as housekeepers at the two hotels they received a piece rate of $4 to $4.25 for each room cleaned. They claim that as the rooms were time consuming, they could only clean a few each day, so their rates did not meet minimum wage requirements. Additionally, they claim that this rate was in violation of their contract with the hotel.

Allegedly, some workers tried to leave their employment after discovering that the company violated the employment promises and contracts, but the workers then discovered that they had incurred substantial debt to the company to cover their recruitment fees and other expenses. Allegedly, the workers were unable to leave because of these debts.

The workers and their representatives believe that there are between 50 and 100 individuals who would be included in a putative Class. However, it is reportedly hard to determine how many total Class Members because the workers are migrant workers and foreign nationals.

The workers are represented by Brady R. Henderson of the American Civil Liberties Union of Oklahoma, Carol Vigne of Legal Aid at Work, Christopher J. Willett, Caitlin Boehne and Rebecca Eisenbrey of the Equal Justice Center, and pro bono lawyers Eben Colby, Catherine Fisher and Isaac Saidel­-Goley.

The Holiday Inn, Hampton Hotel Worker Trafficking Class Action Lawsuit is Francis, et al. v. Apex USA Inc., et al., Case No. 5:18-­cv-­00583, in the U.S. District Court for the Western District of Oklahoma.