GEORGE TOWN, CAYMAN ISLANDS- The Cayman Islands Department of Labor has charged the Hyatt Regency Grand Cayman with 65 criminal counts of illegally withholding US$1.5 million in collected tips from staff members.
Director of Labor Dale Banks said the charges filed on Tuesday were the result of a year-long investigation that found Hyatt had withheld the money over a six-year period from 1994. The money was collected as part of an automatic 15 percent gratuity on hotel rooms called for under Caymans Labor Law.
Instead of paying the money to deserving employees, the money was diverted to mid-management and clerical staff, who do not qualify for gratuities under the law.
The Hyatt Regency Grand Cayman is the largest resort hotel in this upscale western Caribbean tourist destination. The hotel has 330 rooms, including golf-course villas and condos and upscale apartments on Grand Caymans famed Seven Mile Beach. The hotel is owned by Canadian engineering and construction firm AGRA Inc., which is merging with British construction firm AMEC Plc. Chicago-based Hyatt Corp. operates the property under a management and franchise agreement with the owners.
Banks said he began his investigation a year ago following complaints from staff members. If convicted, the Hyatt could face a fine of US$1.5 million in addition to the original US$1.5 million diverted from staff. (9/18/00)
Source: Reuters