Hotel chain ordered to pay $138K after appeal dismissed

The Manitoba Labour Board has ordered operators of Western Star All Suites Hotel to pay nearly $138,000 in unpaid wages and administrative fees after it dismissed their appeals involving three foreign workers employed in Westman.

In a decision dated Aug. 25, the board ordered 6692452 Manitoba Ltd. (doing business as Western Star All Suites Hotel), 1638185 Alberta Ltd. and company director P.X. to pay a total of $137,915.79 to the Employment Standards Branch for wages owed to foreign workers S.J., J.B. and G.R.

The decision was edited to protect the personal information of the employees, who worked at a hotel, reportedly in Melita, at different times and also lived there during their employment.

The board stated the three employees were owed wages after hearing evidence about long working hours, irregular payments, inadequate employment records and working conditions at the hotel.

“The Board finds that wages are due and owing to the three Employees by the Appellants, including the Appellant Director pursuant to section 90 of the Code,” the document stated.

The largest award was $85,520.98 in unpaid wages to S.J., plus a $1,000 administrative fee, for a total of $86,520.98. J.B. was awarded $22,119.53 in unpaid wages plus a $1,000 fee, while G.R. was awarded $15,775.28 in unpaid wages, $11,500 related to money she said she was forced to withdraw from her bank account, and a $1,000 administrative fee.

The board dismissed the employer’s appeals and varied the original payment-of-wages orders issued by the Employment Standards Officer in November 2024.

The case began after G.R. filed a claim with Employment Standards, the decision said. A separate investigation involving S.J. and J.B. was initiated by the director of Employment Standards after a tip from Workplace Safety and Health.

During the investigation, Employment Standards issued four orders requiring the employer to provide employment records, including information about wages, hours worked, vacation pay and other employment details.

Most of the records were not provided, resulting in two administrative penalties. The Employment Standards Officer ultimately had to calculate the wages owed using other evidence.

The board noted that the lack of records presented a significant challenge.

“Based upon the evidence presented to this Board from all parties, this was not an easy task,” the decision said of the Employment Standards Officer’s investigation.

The officer determined that S.J. and G.R. worked approximately 12 hours a day, seven days a week, based on evidence including employee interviews, text messages, staffing levels, the size of the hotel, observations during visits and available timesheets and payroll records.

The board accepted that assessment, saying the officer was authorized to determine the amount of wages in a “reasonable and appropriate manner” because the employer had failed to produce the required records.

The board also found the employees’ evidence credible.

G.R. testified that she regularly worked from about 5:30 a.m. until 10 or 10:30 p.m., while also being available to respond to guests overnight. She said she performed multiple duties, including front-desk work, beer-vendor duties, housekeeping, laundry and maintenance.

S.J. testified that he worked in several roles at the hotel, including beer sales, guest reservations and bank deposits. He said he frequently worked seven days a week and was not paid for all the hours he worked. He was also paid below the hourly rate identified in his Labour Market Impact Assessment and an employment agreement provided by a representative of the employer.

J.B. testified that she worked in housekeeping, laundry and at the front desk. She said she was initially promised $1,800 a month, but her wages were later reduced to $1,600 and then $800. She said payments were irregular and sometimes made in cash.

The board also heard evidence concerning the workers’ immigration status.

G.R. had a closed work permit requiring her to work as a front-desk hotel clerk for the employer in Esterhazy, Sask. The board found that she was instead sent to work at the Westman hotel between May and July 2024, contrary to the conditions of her work permit and LMIA.

S.J. did not receive a work permit during his employment, while the board found that no work permit or LMIA had been obtained for J.B.

The board was also critical of the hotel’s employment and payroll practices.

“There were also no statutory deductions made, no overtime paid and no vacation scheduled or provided for foreign workers, including the Employees,” the decision said, adding that “most of these practices are in contravention of the Code.”

The board said the employer ultimately acknowledged during final arguments that the hotel had been mismanaged.

The decision was signed by Manitoba Labour Board vice-chairperson Janet Mayor and board members Denis Sutton and Lee Manning.

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