A Rochester-based concessions company must pay about $203,000 in back pay and fines after a U.S. Department of Labor probe found it violated nonimmigrant worker visa requirements.
Investigators say Solem Concessions didn't pay 35 H-2B visa workers a required hourly rate to staff concession stands owned by the company, instead paying a flat rate. The investigation found the company owed about $149,000 in back wages.
Solem Concessions, which operates food stands at state and county fairs, including a cheese curd stand at the Minnesota State Fair, also failed to follow reporting, payroll and timesheet rules and reimbursed workers' visa fees at the end of the company's season rather than during the first work week.
The company challenged the investigation in court, but an administrative law judge dismissed the challenge in May after Solem Concessions failed to provide documentation for its claim. The company did not respond during a 30-day period to appeal the decision.
Owner Jeremy Solem declined to comment on the investigation or the ruling.
"Federal labor law provides worker protections for nonimmigrant workers employed under the H-2B program, and Solem Concessions Inc. violated those requirements," Kristin Tout of the Labor's Department's Wage and Hour Division said in a statement.
