Minnesota carnival operator ordered to pay $210K in back wages for breaking H-2B visa laws

A U.S. Department of Labor judge has ordered GoldStar Amusements and its food vendor in Faribault to pay employees back wages and civil penalties after determining the carnival ride operator violated several H-2B visa wage laws in 2016 and 2017.

The carnival operation firms, which are run by a husband and wife team, must pay employees $146,243 in back wages and another $63,584 in civil fines, according to the March 13 order made public this week.

The ruling comes after an investigation found that carnival operators GoldStar Amusements Inc. and Lee’s Concessions Inc. failed to pay 55 seasonal carnival workers prevailing wages and transportation costs as mandated under an H-2B visa program for foreign workers.

The companies also failed to keep accurate earning statements for the workers, according to Administrative Law Judge Steven Bell.

Wayne Pierce, an attorney for the accused companies, said his clients disagree with the rulings and plan to appeal the decision before the April 13 deadline.

Pierce said his clients, GoldStar owner Michael Featherston and wife Connie Featherston, who owns Lee’s Concessions, say they overpaid the South African workers in question. The workers were paid up front for several hours that were later not worked due to rain canceling some carnival events.

After credits are factored in, his clients do not owe back wages, he said.

Pierce also said his clients always showed the workers what their pay was and offered to provide pay stubs if the workers wanted them. Printed pay stubs tended to just be discarded, creating a litter problem, he said.

Department of Labor officials, however, see things differently. Investigative hearings in July 2023 and in January found GoldStar and Lee’s failed to follow the specific guidelines set up by the Labor Department’s H-2B visa program.

H-2B visas allow employers to hire foreign workers to perform temporary nonagricultural work, provided they pay prevailing wages and all transportation costs and keep detailed payroll records.

“The H-2B visa program includes very specific terms regarding wages, transportation and other requirements, which are clearly defined for employers when they apply to hire foreign workers,” said Kristin Tout, the Minneapolis district director in the Labor Department’s wage and hour division. “Employers such as these are legally responsible for knowing and complying with federal wage laws.”