A federal appeals court has ruled a Louisiana hotel chain wasn't obligated to cover the relocation expenses incurred by immigrant workers recruited to work in New Orleans after Hurricane Katrina.
The 5th Circuit Court of Appeals on Wednesday dismissed a lawsuit accusing Decatur Hotels of exploiting foreign workers it hired after the August 2005 storm scattered many of its employees.
The suit claims Decatur Hotels violated the Fair Labor Standards Act when it refused to reimburse foreign workers for recruitment, transportation and visa expenses. Decatur's foreign workers spent up to $5,000 apiece to relocate to New Orleans.
A three-judge panel concluded the law doesn't require an employer to cover any of those expenses.