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NEW ORLEANS -- Employers aren't obligated to cover the moving costs and other expenses incurred by many immigrant workers, a federal appeals court has ruled in a case against a New Orleans hotelier that hired dozens of foreign workers after Hurricane Katrina.
The 5th Circuit Court of Appeals on Wednesday ordered the dismissal of a lawsuit that accused Decatur Hotels of exploiting foreign workers recruited to work at its hotels after the August 2005 storm, which scattered many of the hotel chain's employees and left the city with a labor shortage.
The suit claims Decatur violated the Fair Labor Standards Act when it refused to reimburse foreign workers for recruitment, transportation and visa expenses. Decatur's guest workers spent up to $5,000 apiece to move to New Orleans from Bolivia, Peru and the Dominican Republic.
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